If I'm married, what happens if only 1 spouse files ?

This is one of the most common questions that clients have. Often one spouse wants to file bankruptcy, but the other spouse does not. What happens ?

In order to file a Chapter 7 petition, your income must be below the median income for your area based on your family size. If you are married, the Court considers the income of both spouses. Let me say it again: THE INCOME OF BOTH SPOUSES. In other words, you will need to list your spouse's income, even though only you are filing. If you and your spouse make below the means test amount for your area, then you can qualify for chapter 7. If not, then we will have to look at any possible exemptions and you may only be eligible for a Chapter 13.

Let's go through an example: Danny and Donna Door are married and have 2 dependents. Donna and Danny do not own a home and do not have any joint debt. Donna has all of her credit in her own name and Danny has all of this credit in his name. Donna is unemployed and receiving unemployment (which is not considered income for the means test purpose), Danny works full-time, making approximately $65,000 per year + a bonus of approximately $10,000. Donna contacts my office and wants to file. The Court will look at Donna's family size of 4 (2 adults + 2 dependents) and her and David's income. A family of four, must have income lower than 79,971.00 in order to qualify for a Chapter 7. Here, Donna and David's income is $75,000 which is less than $79,971.00, Donna would qualify for Chapter 7.

Let's try another example: Jenna and Jordan Jeans. Jenna and Jordan have no children and no dependents. Jenna makes 30,000 per year and Jordan makes $45,000 per year. The income requirement for a family of 2 in California is: 65,097.00. Their total income is $75,000. Here, Jenna doesn't understand why the Court is looking to Jordan's income which means she doesn't qualify. The bottom line is that even is Jenna wants to file and Jordan does not want to be involved, they look at both of their incomes and they do not qualify.

There a lot of websites with means tests calculators, you can input your income and your family size and it will tell you whether you qualify. However, my office to let us help you determine whether you qualify for a Chapter 7 petition.

The information provided here does not constitute legal advice and is here for informational purposes only. Anyone reading this blog should consult with a licensed CA bankruptcy attorney for more information and to determine whether they qualify for Chapter 7.