Means Test and "Household Income"

[Charlie777]

If an unmarried couple lives together, he is employed with above mediun income, she is unemployed, is her means test fro Chapter 7 based on her circumstances, or does his income come into the picture?

[scorpion35]

both incomes i think

[HHM]

When people live together, the non-fling persons "contribution" to household expenses are the issue. There are several ways to address this issue on the means test and schedules.

However, 1st question, does it matter. Even if you included the roommates income, would the filing partner fail the means test?

This is a type of scenario where you should hire an attorney. It raises issues of common law marriage, potential creditor fraud, etc depending on the nature of the relationship.

[oregonpilot]

If an unmarried couple lives together, he is employed with above mediun income, she is unemployed, is her means test fro Chapter 7 based on her circumstances, or does his income come into the picture?

Charlie, i don't know if this will help cuz my situation isn;t exactly the same. BUT
my guy and i have lived together for many years so when i filed my atty looked at his income too...which is S S and a small retirement. Our combined income was about 20k under means test amt though. I told atty that if at all possible ,i did not want my sweetie involved and that we kept our finances completely separate. and handle all our own vehicle expenses
We split living expenses EXACTLY in half. So when i filed atty claimed half of utility and food expenses and the rent amt that i paid him ,all my medical and vehicle and my business expenses. I ended up with i think about -400 DMI. There was never a question about me being a household of 1.
Best to you.

[tcreegan]

Hi all, Hi Charlie,

Short answer from posts I have read:

Household of 2 = both incomes, claim all expenses
Household of 1 = one income, claim half expenses
Household of 1 = one income + partner contributions to expenses, claim all expenses

To get complicated, if it is really beneficial for you to file jointly you can check w/ a BK attorney about common-law marriage, fill out the deductions from income section of the means-test and see where the DMI is at w/ the combined income. ...key words are 'really beneficial'

Another thought at the bottom of the barrel, if you two have joint debts and only you file, your significant other is still on the hook for the debt. Maryland not being a community property state and all....

Well, lots of good fun for you to go through......

Tom in Colo