Filing BK when married

[philrozzi]

I have around 50,000 in debt give or take a few thousand, A little more than half is student loans. I am thinking about filing bankruptcy to give myself a fresh start but now this means test thing is confusing the crap out of me. I don't live in a community property state, I am filing without my wife and I make 20,000 a year and my wife makes 50,000. I read that they consider her income in the means test which means that I am above the average income for 2 in my state. Am I reading this right? If i'm not eligible for chapter 7 what do most do from there, just default on everything?

I also wanted to mention that if this helps at all my address is different than hers because I never changed it from my parents house since high school, would they still consider her income in the means test if I was to say we live apart? Or would we have to be legally seperated? We also file taxes as not living together.

[Drazil65]

I also wanted to mention that if this helps at all my address is different than hers because I never changed it from my parents house since high school, would they still consider her income in the means test if I was to say we live apart? Or would we have to be legally seperated? We also file taxes as not living together.

Hi and welcome. When it comes to filing bankruptcy the best method is honesty, if you are married legally then you are married. I do have to wonder why a married man would not change his address after moving and getting married though? Anyway, honesty always best policy, always! Good Luck....

[keepmine]

Agree with Drazil-if you're married you're married and that needs to be disclosed.
While her income must be disclosed, she will also be allowed to deduct all hh and personal expenses that she pays or has a legal obligation to pay in order to determine if there is sufficient monthly disposable income to fund a Chapter 13.
If you only make $20K, I'd imagine she is carrying the load.
Most bk lawyers will give a free or lowcost initial consultation. Speak with a few and get all of this explained .

[philrozzi]

Thanks for the replies, the reason why I didn't switch my address is really just for tax purposes because I still work in the city where I have my address.

Yes my wife does carry moast of the load, she pays the mortgage, her car and property tax and I pay the utilities, internet and phone. Let me know if I'm getting this right, since my wife pays mortgage and property tax then that's counted as income towards me and the rest she uses for her personal expenses so that money won't be counted towards the means test?

[keepmine]

Thanks for the replies, the reason why I didn't switch my address is really just for tax purposes because I still work in the city where I have my address.

Yes my wife does carry moast of the load, she pays the mortgage, her car and property tax and I pay the utilities, internet and phone. Let me know if I'm getting this right, since my wife pays mortgage and property tax then that's counted as income towards me and the rest she uses for her personal expenses so that money won't be counted towards the means test?

No. What it means is, your wife is using her income to pay pretty signficant bills so it's very doubtful there is enough HH income to fund a Chapter 13.

[philrozzi]

Ok thanks a bunch. I'm going to get some legal counsel and see what they say. With mortgage at 600 a month and property tax at 1100 for the year that should make a big adjustment to her income so we'll see what happens.

[grizindabox]

Just a reminder, student loans can not, in most cases, be discharged through bankruptcy.

[philrozzi]

Yes I am aware, thanks