Full question:
My husband and I are in the process of informal separation I am living downstairs with my parents and we have separate entrances and exits.Is this possible for me to declare bankruptcy without my husbands salary? Also I will mention that we have separate accounts checking and savings and we split all the bills down evenly.
- Category: Bankruptcy
- Date:
- State: Massachusetts
Answer:
In general, in both community and noncommunity property states, the household must qualify for bankruptcy and not just the individual. It is not required that both spouses file bankruptcy if one spouse decides to file. However, the non-filling spouse will still be liable on joint debts of the parties. It follows then that if the majority of debts are in both spouses names, both spouses should file bankruptcy or the benefits of bankruptcy are lost. However, if the majority of the debts are in one spouse's name only it is not necessary for both spouses to file, as the debts would be extinguished and the other spouse is not liable for them.
The "current monthly income" received by the debtor is a defined term in the Bankruptcy Code and means the average monthly income received over the six calendar months before commencement of the bankruptcy case, including regular contributions to household expenses from nondebtors and including income from the debtor's spouse if the petition is a joint petition, but not including social security income or certain payments made because the debtor is the victim of certain crimes. 11 U.S.C. § 101(10A). In a situation where only one spouse files, the income and expenses of the non-filing spouse is required so that the court, the trustee and creditors can evaluate the household's financial position.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
