Unmarried and Household Income

[Unmarried]

Hi all. I have a question. My boyfriend is filing bankruptcy (trying to get chapter 7). We are living together, but have separate bank and credit accounts. He pays the rent and I pay everything else (all utilities are in my name). His lawyer said that my income must be included in the household income for the means test. If my income is included, he is well above the means test limit. Should my income indeed be included? I have tried to look this up, but have found conflicting answers. Can anyone offer any assistance on this? I'm confused how my income can be included when we are unmarried and I'm not filing. And if my income is included, then would my expenses (i.e. credit card, car payment, etc) be included as household expenses as well? TIA!

[newbie2]

Hi all. I have a question. My boyfriend is filing bankruptcy (trying to get chapter 7). We are living together, but have separate bank and credit accounts. He pays the rent and I pay everything else (all utilities are in my name). His lawyer said that my income must be included in the household income for the means test. If my income is included, he is well above the means test limit. Should my income indeed be included? I have tried to look this up, but have found conflicting answers. Can anyone offer any assistance on this? I'm confused how my income can be included when we are unmarried and I'm not filing. And if my income is included, then would my expenses (i.e. credit card, car payment, etc) be included as household expenses as well? TIA!

There is a part of the bankruptcy code that says "all household income" and that is what the attorney is referring to. You are in the household, you contribute to the household so you are part of the household. I've also read that in some areas that this isn't a problem and the trustees overlook significant others (unmarried household members) but in some they do. Your boyfriends attorney knows what the local trustee will want.

What you can do however (your boyfriend can do) is include your income, and then back out of your income what you do not contribute to the household (your own bills and expenses that don't contribute to the house bills). You most certainly can take in to account your own personal bills.

[Unmarried]

newbie2 - Thanks for that. That was my understanding, but I was getting conflicting information stating that marital status has a bearing on "household" income. Unfortunately I'm pretty sure that my income, even with backing out my expenses will still put him over the limit (as he's borderline with his income alone)... But thanks very much for clarifying this confusing issue for me!

Also, another question. If I were to lose my job (we're expecting) and then he were to file several months later, how would the expenses work out then? I would become a dependent of his, right? Would my bills (i.e. credit card, car, etc) be part of the expenses equation? TIA, again!!

[newbie2]

newbie2 - Thanks for that. That was my understanding, but I was getting conflicting information stating that marital status has a bearing on "household" income. Unfortunately I'm pretty sure that my income, even with backing out my expenses will still put him over the limit (as he's borderline with his income alone)... But thanks very much for clarifying this confusing issue for me!

Also, another question. If I were to lose my job (we're expecting) and then he were to file several months later, how would the expenses work out then? I would become a dependent of his, right? Would my bills (i.e. credit card, car, etc) be part of the expenses equation? TIA, again!!

If you lose your job then you have no income (except unemployment if you collect it..) so the household income for your boyfriend would go down.

I don't believe that your bills would become part of his expenses, but ask the attorney to clarify.

If you are expecting I personally would try to hold off on filing BK until the baby is born. With the added new member the median income shouldn't be an issue then, if he is close to borderline now. Also, expenses will be much higher with a newborn.

Good luck to all of you.

[Unmarried]

newbie2 - Big help! We'll be asking the attorney about the specifics. I do think that waiting is going to be the best idea. Thanks again!

[OutofTime]

If anything, you should also check your district to see if you should even be included in the household. But regarding income, I could be wrong but assuming you bf doesn't claim you for taxes, you should only have to include your household contribution.

[SMinGA]

That sounds right to me - so if you contribute $1000 a month to the household expenses (shared things, like utilities/rent/groceries) then that $1000 goes in as household income & those expenses are counted. Not your gross income and your personal expenses for that do not pertain to the household.

If anything, you should also check your district to see if you should even be included in the household. But regarding income, I could be wrong but assuming you bf doesn't claim you for taxes, you should only have to include your household contribution.

[Unmarried]

Thanks all! This is all very confusing and I've got a list a of questions pertaining to all this a mile long for the attorney. More than likely, my income will be going away shortly, so that'll help his case. I just need to make sure we are positioning ourselves correctly as far as all the expenses, taxes and such are concerned.