Renting a room out in my house.....income?

[MSbklawyer]

In this scenario would you then include the roommate as part of the household count and income as well?

That's one of those questions that lawyers and courts are still arguing about.

The majority rule appears to be that the roommate counts as a household member. But only the income that the roommate contributes to household expenses counts as income.

Therefore, I am satisfied that "household" as used in Section 1325(b)(4)(H) means all persons, related or not, who reside in the same housing unit as does the debtor. What that housing unit may be will vary. It could be a single-family home in one case, a duplex unit in another, or an apartment in yet another. Indeed, it could be as small as a single room were the debtor to live in a hotel or a boarding house.

In re Smith, 396 B.R. 214 (Bankr. W.D. Mich., 2008)

Contra

In re Herbert, 405 B.R. 165 (Bankr.W.D.N.C., 2008)

[shabam]

In this scenario would you then include the roommate as part of the household count and income as well?

Which is why a credit application should not ask for household income. It should clearly ask for your income and then ask for any additional income, with the source being specified.

[vicmost]

Be careful. All your bank records will be scrutinized.....You will have to explain any discrepancies...Not to mention that I'm sure a Trustee has access to DMV and public records...Is your roommate a registered voter? Is his car registered to your address? Where is his tax returns mailed to?.....There are countless ways to get caught...I wouldn't chance it.

[justbroke]

In this scenario would you then include the roommate as part of the household count and income as well?

If you wanted to, you can include them as a household member for determining whether you're above or below median. However, you couldn't use them for any other part of the means test, should you be over the median.

Of course I agree with MSbklawyer on the definition of income. I like to take 11 USC 101, which defines "current monthly income" a little futher. It simply reads that all income without regard to whether such income is taxable income... is counted. (So the amount need not even be "on" your tax return.)