Under Oregon Rev. Stat. 108.040, each spouse is liable for the debts of the other spouse incurred as "expenses of the family" or for "the education of the minor children." "Expenses of the family" means "expenses incurred for the benefit of a member of the family." Unfortunately, this definition includes practically every debt that occurs during a marriage.
Therefore, it is practically impossible to file an individual bankruptcy in Oregon, unless the debts were incurred prior to marriage, or for the benefit of a third party outside the marriage.
Assuming an individual bankruptcy filing, then the debtor's current monthly income is reduced by the amount of the nonfiling spouse's income that was not regularly contributed to the debtor's household expenses or for the debtor's dependents to arrive at the debtor's current monthly income.
In other words, if a spouse were to put all of his or her earnings into a separate bank account and never make it available to the other spouse or family, then that income would not be included in the "means test" calculation. Otherwise, it's included.
Note: Only the last six months worth of income is considered in the "means test" calculation.
Hope this helps.
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Edited by socrateaser on 10/3/2010 at 5:16 PM EST