single women in dallas
The Law Office Of Barry R. Levine

100 Cummings Center
Suite 327g
Beverly, MA 01915

Call Us Now For A Personalized Case Evaluation

(978) 355-1177

Call Us Now For A Personalized Case Evaluation

The Law Office Of Barry R. Levine

In this article, you will discover:

  • How to determine if you qualify for a Chapter 7 bankruptcy.
  • Why living apart can save you money.

Does My Spouse’s Income Affect My Bankruptcy If I File Alone?

When you file bankruptcy, your spouse’s income is considered part of the household income. I will be filing bankruptcy soon for a nice young lady who opened a clothing store but had to close when COVID hit. Her husband makes a small fortune, but I’m going to try to get her a Chapter 7 by saying all of her debt was associated with her business. In my opinion, all of her debt is business debt, even though it much of it was accomplished on credit cards. If that doesn’t work, she will have to file a Chapter 13 because of her husband’s income.

There is a simple chart we use. If you are two people and your household income is more than $92,000, you would have to complete the means test to see whether you are a Chapter 13 or Chapter 7. The chart goes up to 8 people.

The only way we could conceivably not factor in the spouse’s income, is if the husband and wife are separated and maintain two separate households. Then the husband’s income would be exempt from consideration.

What Happens To Debt And Property If I File For Bankruptcy Without My Spouse?

If you file bankruptcy without your spouse, all property is considered unless we can certify that the property in question is in the no filing spouse’s name. Whether it’s the wife or the husband who files, an analysis of their respective property interests is essential and, if possible, should be dealt with properly prior to filing.

I had clients, a couple that were going to get a divorce. They owned two homes, one west of Boston and one on the Cape. For the purposes of filing bankruptcy, I suggested they separate, living separately in each home, they were going to get a divorce. They could have each taken a homestead, and life would go on—but nobody listens to me.

The trustee asked me, “Mr. Levine, so that house on the Cape, what are you going to do with that?” The equity in it was worth $40,000 or $50,000. Ultimately, my client happened to have a wealthy father who came up with the money, and we bought the equity back from the trustee.

Is It Better To File Bankruptcy Before Or After You Are Married?

In my opinion, it is better to file bankruptcy before you get married. It makes things cleaner. I’ve had several clients who had insisted on one or the other filing to get rid of the debt before they married. It makes sense.

For more information on Non-Filing Spouse’s Income and Bankruptcy, an initial consultation is your best next step. Get the information and legal answers you’re seeking by calling (978) 355-1177 today.

Barry R. Levine

Call Us Now For A Personalized Case Evaluation
(978) 355-1177