Unusual Means Test Qualification Question

[blueeyz]

I am single and I do not pass the chapter 7 means test. I have a live in partner of 12 years, 11 of those years we have lived together. I have been supporting him since he has been out work. In order to qualify for chapter 7, I need another household member and he does not count because I have never claimed him as a dependent on my taxes.

We have been planning to get married next year but were thinking of just getting married now so I can qualify for chapter 7 because I really do not want to be bothered with chapter 13. I spoke to my paralegal today and she is going to talk to my attorney about this. Does anyone know if I can get married and file BK right after?

[momofthree]

Of course you can! Congrats!

[ValleYum]

blueeyz:

I think it would definitely be worth the time, effort and money to make sure your hubby-to-be is protected - perhaps by a pre-nup??

Congrats on your upcoming (I think!) wedding!!

[tcreegan]

Hi blueeyz,

In re Bostwick, Case No. 08-46026 the MN court held that two unmarried, unrelated roommates were a household of 2 on the means test

In re Jewell , 365 BR 796 (Bankr SD Ohio 2007). The court recognized the Trustee’s unofficial test in Jewell as requiring: (1) the group of people live together for more than one year; (2) the group of people pooled their income; and (3) that the group acted as an economic unit. Jewell, 365 BR at 800 n5

BK law is not IRS law, the BK code says 'household' and leaves it undefined. As with all undefined legal matters, what matters is what your local court does. See what your attorney has to say on this.

Happy Thanksgiving!

Tom in Colo

[blueeyz]

Thanks for the info Tom. I am pretty sure when I met with my attorney earlier in the year he said I could add my live in partner as a household member. He was just concerned that his income would cause me to not pass the means test when actually adding him will help me pass the means test since he currently has no income. So I guess I will find out next week what I need to do.

[JKPDX]

Hi Blue,

I have some first hand knowledge of this. My partner pays me "rent" every month and I pay all the bills (mortgage, utilities, car insurance, food, etc.) I didn't know that I was supposed to be claiming so called "rent" every month, and that income he paid me was indeed counted as income on my means test, even though I didn't really think it should (since it was used for his share of the expenses). However, because of this, I was able to increase some of my monthly expenses (such as food) and the BK trustee didn't even question it.

One of my friends was in the same situation (without paying rent) and his partner is out of work. His attorney (the same one I used) just told the trustee that his partner has medical issues (true) and isn't able to work and this the BK filer was actually supporting a dependent in the household. His trustee didn't bat an eye about it.