Taking elderly mother in law's income into account

[KAKRN97]

Just got off the phone with my lawyer. Apparently because my 86yr old mother in law lives with us, the court takes her income into consideration! She brings in about 1700/month with her pension and social security and contributes approximately $500 to the household in the form of groceries..her Medicare part B premium is only $200/month. She spends around $100/month getting her hair done, $50 month in prescriptions/vitamins, $100/car maintenance and gas...and that's about it!!
I'm afraid this may very well prevent me from filing Ch7 and we'll have to go with a Ch13...UGH! Attorney NEVER mention that they'd take her income into consideration when we originally met with him.

I'm hoping to file by Friday as if I wait till June we definitely won't qualify for Ch 7. I've got a phone meeting with the paralegal tomorrow afternoon and have to run papers out to their office in the morning...looks like I won't be going to work tomorrow night(12hr night shift--can take a sick day)

[newbie2]

Just got off the phone with my lawyer. Apparently because my 86yr old mother in law lives with us, the court takes her income into consideration! She brings in about 1700/month with her pension and social security and contributes approximately $500 to the household in the form of groceries..her Medicare part B premium is only $200/month. She spends around $100/month getting her hair done, $50 month in prescriptions/vitamins, $100/car maintenance and gas...and that's about it!!
I'm afraid this may very well prevent me from filing Ch7 and we'll have to go with a Ch13...UGH! Attorney NEVER mention that they'd take her income into consideration when we originally met with him.

I'm hoping to file by Friday as if I wait till June we definitely won't qualify for Ch 7. I've got a phone meeting with the paralegal tomorrow afternoon and have to run papers out to their office in the morning...looks like I won't be going to work tomorrow night(12hr night shift--can take a sick day)

The big factor here is your quote: "She contributes $500 per month.." Ouch. Yes, that hurts.

Since you are including her income, ask if your household members also increase by 1, thereby possibly offsetting the income. Good luck.

[KAKRN97]

The household members DO increase by 1 as she does live with us. Wish she got less money from the govt and pension. My now-deceased grandmother who was the same age as my mother in law lived on less than $400/month SS income. Won't know any more till I speak with the paralegal tomorrow.

[newbie2]

The household members DO increase by 1 as she does live with us. Wish she got less money from the govt and pension. My now-deceased grandmother who was the same age as my mother in law lived on less than $400/month SS income. Won't know any more till I speak with the paralegal tomorrow.

I see. I didn't realize you had already included her as a household member in your means test. I hope you can come up with other expenses to get you through a Chapter 7.

[KAKRN97]

Well lets see...since Friday, I've dropped 3K in car repairs...new transmission, fuel filter, coil springs, tune up. Does that count??

[keepinitreal]

Apparently because my 86yr old mother in law lives with us, the court takes her income into consideration! She brings in about 1700/month with her pension and social security and contributes approximately $500 to the household in the form of groceries.

Aren't social security payments made to retirees not counted as income for the means test?

[KAKRN97]

I don't know...I'll have to ask my attorney that question tomorrow.

[Flamingo]

Aren't social security payments made to retirees not counted as income for the means test?

I believe that is only for those filing the bankruptcy. If someone else lives in the household that receives a pension or SS or other income, it is counted toward the household income.

[KAKRN97]

See, that aint right because she is not responsible for my debts.

[newbie2]

See, that aint right because she is not responsible for my debts.

No, she's not responsible for your debts, but you do receive income from her. Hope it goes well for you today when you talk to your attorney.

[Universal]

Very interesting points and questions. Please keep us updated after you meet with counsel.

[KAKRN97]

No, she's not responsible for your debts, but you do receive income from her. Hope it goes well for you today when you talk to your attorney.

She buys groceries in lieu of paying rent..no different than a roommate.

[KAKRN97]

Well, I'm off to the lawyer's office this am.

[newbie2]

She buys groceries in lieu of paying rent..no different than a roommate.

I understand that. But you said she contributed $500 of her income - it doesn't have to be in cash to be contributed. (She is in essence knocking $500 off your grocery budget). The para is looking at the extra income and adding it in, and rightfully so according to the bk rules. Good luck with your meeting and let us know how it works out for you.

[KAKRN97]

I guess I can see taking $500 into consideration but not $1784/month! MIL has her own car insurance, health insurance, gas, toiletries, clothing etc to purchase as we don't provide any of that for her. I gave the clerk a list of her expenses this am and will discuss it further with the paralegal later today. I've got a whole list of questions and I'm sure she's got further questions for me as well.