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cortrightlaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 513
Experience:  Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
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A debtor is filing Chapter 7 and lives with his ex-wife. If

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A debtor is filing Chapter 7 and lives with his ex-wife. If only the debtor's income is reported on Form 22A, then he is under the median income for his state and qualifies for Chapter 7. But if the debtor includes his ex-wife's income, he fails the means-test and is not eligible for Chapter 7. Must the debtor include his ex-wife's income on Form 22A?

cortrightlaw : He does not need to show here income but he needs to take into account any expenses she pays. For example if she pays part of the mortgage or rent then he can not take that as an expense. He can only list expense he actually pays.

If the debtor is below the state's median income, and is thus automatically eligible for Chapter 7, does he still need to be concerned with what expenses are reported on Form 22A? Also, even though the live-in ex-wife's income is not reported on Form 22A, would the debtor still include her in the section of the form that asks for household size?

cortrightlaw : I am always aware of the income and expenses even if my client passed the means test, if they show an abundance of disposable income the bankruptcy filing could be considered bad faith and draw an objection by the trustee. If she jist rents a room I would not include her as part of the household.

If they split all the household expenses, would you still include her as part of the household on Form 22A?

cortrightlaw : I have honestly never put a roommate or housemate on 22A.
cortrightlaw : The trustee in my district is going to restrict household members those who the debtor is financially responsible for and preferably a dependent on the tax return or the occasional elderly parent that the adult child is taking care of.
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