Means Test & Roommates?

[blucat13]

I asked this in a different thread, but I didn't word it very well so I am trying again....

I am living with my BF, and have moved out of the house I own, anticipating CH 7 filing and surrendering my house as part of that.

I am above the median income for the means test, and so the number of people in my household will make a big difference in qualifying for Ch. 7. I know if we were married it would not be a question, but we are not, and have no plans to get married right now. My question is, does he count toward the number of people in my household? Our expenses are almost entirely separate at the moment, since I am still paying the mortgage and utilities on my house, and will have to until I am sure I can file Ch. 7. He pays for things at his house, I pay for the things I need for mine, even though we live in his house.

This is a question my lawyer didn't really answer to my satisfaction, so I am hoping someone here has experience with this. I know same-sex couples have this issue as well, where the person you live with is seen as a 'roommate' rather than a spouse. How do they determine how many people live in your household?

Any advice would be appreciated.

Tami

[TEW]

heads on pillows and his income will count its a houshold

[justbroke]

For the purposes of the means test, household includes anyone living under your same roof. There is no "relationship" test to prove membership of a household.

Unfortunately, any amount that the household members contributes to your support, has to be included as income for the means test.

For example, if you claim the house is $1,000 a month and your household members contribute $500/month towards it... then you have an additional $500/month in income.

[HHM]

I think that is conceptually backwards, its not that your roommates money counts as income, its more that your roommate's contributions to the expenses reduces the amount of expense you can claim.

There is a "quasi" relationship test when it comes to the income side of the means test. The income on the means test and for BK purposes has to be something the trustee can legally exercise control over...which the trustee cannot do for a roommate. Thus, the issue is how the roommate contributes too, and reduces the amount, you can claim for certain expenses.

[justbroke]

I think that is conceptually backwards, its not that your roommates money counts as income, it more that your roommates contributions to the expenses reduces the amount of expense you can claim...

That's an interesting distinction. I think of it as the "offset", but you're saying that the offset reduces the expense to start with. So, instead of saying the basis of my "rental expense" is $1,000 and then adding additional income of $500 to offset the contribution, you're saying that the rental basis is $500 (not $1,000).

My fiance contributes nothing, so I didn't have to perform that calculation.

[blucat13]

We have a rather interesting situation. He pays nothing for rent where we are living, because his mom owns the house and is not charging him rent while he is in school. So, the only joint expenses we have are groceries. He pays utilities and phone/cable and trash for his house, BUT I still own my house and have the mortgage and utilities there.

So, this seems like it might raise a red flag, as it is unusual. To be living in one house where I don't pay rent, yet surrendering another house that I own? I wonder also if there is a time frame issue with them considering this fraud, as I have moved in with him just before the BK filing? You know, it looking like I moved in so I could have one more 'head on the bed' for the means test?


I contacted a second attorney today, as I didn't feel like my first consultation addressed this clearly at all, and this is obviously critical to passing the means test and being able to file a Ch. 7.

T.