I live in Pennsylvania. 25 years old. AGI $33,737. I am responsible for myself ONLY (no children/ dependents.) I moved in with my boyfriend and his father a few months ago because I couldn't afford to live in an apartment anymore. Is their income counted in the Means Test? We're NOT responsible for each other financially. I just pay rent to his father for utilities.
The Means Test is one part of a two part determination of whether you are able to qualify to file Chapter 7. It starts with the median household income and then, as on a tax return, you take the deductions you are allowed. Being over median income does not disqualify you from chapter 7 bankruptcy, and if after taking all the deductions you are allowed to use, you may still be able to qualify for Chapter 7 if you pass the "good faith test." More info on that at the link below.
I file at least a couple of cases a month where the debtor does not pass the Means Test but does satisfy the good faith test. Have had some loud yelling, but no actual litigation to stop the chapter 7 from going through. Hope this perspective helps!
No private follow up questions or comments. Use this public forum so all the attorney volunteers can respond. The "Email" button can be used to arrange a consultation if you meet the criteria my office requires.
You would only have to count their income to the extent they regularly contribute to your expenses. If you were my client I'd explore this in more detail to make sure, by I think you would have a household size of one.
DISCLAIMER: This message is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this message. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area. I am a Federally Designated Debt Relief Agency under the United States Bankruptcy Code. I proudly help people in financial need file bankruptcy cases. IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).
Yes, you qualify. Neither your bf's or his father's income is counted in the Means Test.
However, you should still speak with an attorney regarding other potential issues, including, but not limited to, Schedules I & J so that a totality of the circumstances issue does not arise.
Legal disclaimer: The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the Commonwealth of Pennsylvania.
Years licensed, work experience, education
Peer endorsements, associations, awards
Publications, speaking engagements