Does Means Test Include Income Earned By Non-filing Live-in Companions?

Many Chapter 7 means tests involve issues about the size of a household and computations of household income. Consider the following questions posed in an email. A prospective debtor lives with his young child and the child’s mother. The debtor and mother are not married. The debtor and his girlfriend have separate bank accounts, ad they share payment of household bills. The debtor wants to know if his means test includes income earned by the unmarried girlfriend.

A debtor’s household includes all people living with the debtor. Income earned by any member of the household and used to pay household expenses is included in the debtor’s income for purposes of the means test. Marriage is not relevant. Means test income includes all income earned by a live-in companion, life partner, or even a working child. Rental income from investment property is included also, although mortgage payments for the investment property would be an offsetting expense. In this example, the girlfriend’s income would be included in the debtor’s means test income.

posted by Jonathan Alper, bankruptcy and asset protection attorney, Orlando, Florida

Comments

[Bankruptcy Court]

Bankruptcy occurs when your liabilities are greater than your assets; basically when you cannot pay your debts as and when they fall due. There are three ways to be made bankrupt. You can apply to be made bankrupt yourself, known as Voluntary bankruptcy, a company that you owe at least £750 to

[ROCKY]

does this include back childsupport when dot married ans she recieves help fron state

[Rick]

We live in California and have an investment property in Orlando that we are losing through foreclosure. Like everyone else, we are very concerned about a deficiency judgement that is allowed by the state of Florida. I have read mixed comments regarding the possibility of Countrywide pursuing a deficiency judgement, however, we are trying to prepare for the worst. What is your opinion and what do you think we should do at this time? We are seriously looking into filing bankruptcy to protect our home and assets.