Roommate Contribution - Same Sex Partner -Joint Bank Account

[livwilde]

Hello all! I do apologize if what I am about to ask has already been asked or posted somewhere. If it has, I would gladly appreciate a link to the appropiate thread that answers my question. Okay, here's my situation:

My partner and I are both considering filing Chapter 7 bankruptcy. We are a bit confused on the roommate contribution section of the means test though (we are trying to use the means test calculator on legalconsumer.com to get an idea of things). We obviously are not legally recognized as "married" under our State of Nevada, yet we have a joint bank account together and pay everything out of that bank account. What's mine is hers, what's hers is mine. Therefore, neither of us really has a "set" amount that each would be able to claim as an actual "contribution" from the other on the means test. So how would we fill out that portion? Do we each file as a 1 person household or a 2 person household? How much would we have to claim each other contributes? How do we even do that? Do we each just claim half of all our expenses as each other contributions? Will they require proof/paper trail of it? How about if we don't have a paper trail? Which we obviously don't 'cause we share everything and both our names are on everything. I'm sooo sorry for all the questions! This section of the means test is just so confusing to us given our circumstances. It also can make or break our chances of filing Chapter 7 depending on what we have to do. I appreciate any info anyone can give me! Thanks ahead of time!

[magyar123]

First I would close the joint bank account - and open two separate ones. Split the bills in half, and when it comes to paying bills send two checks, one from your account the other from her account. You will then be able to show your income/expenses, and she can show hers.
If none of the debts are joint you could/should be able to file separate bankruptcies.

[BROKENN]

Do the bills have your name? Or hers?

Even though things are together, even a married couple has one name on utilities, etc.

So if proof was asked, it would be correct.

[livwilde]

Hey you two! Thanks for the replies!

magyar123.....Even if we did split joint accounts, we both would still have to claim each other's contributions though, correct? Or could we both refrain from reporting it and just solely report our own income and expenses?

Brokenn...Some bills have both our names, some just have mine. So if we were to split our joint bank account for paper trail purposes, should we just divide the bills evenly under our names for that sake only? Like electric & gas under my name and cable & water under her name? And that would be exactly what we each would claim as our own expenses?

Thanks again!

[JRScott]

I'd assume a 50/50 split on all bills. So each of you would report the other as contributing income sufficient to pay half the rent/mortgage, utilities, food, etc.

Obviously you wouldn't be splitting your insurance, retirement etc and for those there would only be your contributions. (Except maybe insurance on the rental home/mortgaged home).

It will make it a bit more complex with the joint account. Rather than closing it. What you might could do is each open another separate account. Place each of your checks in your respective new accounts. Then from those accounts write a check/transfer to the joint account sufficient money to pay your share of the joint bills. This would help create a paper trail.

Then for bills that are individually based you'd just make that out of your personal account rather than the joint account.

[fltoo]

Off topic, but, case in point, because what you are having to do to accomodate a legal process available to all Americans really disgusts me.

Every single American who chooses, should be able to form a legal union and have all the benefits of legal unions available to them.

[livwilde]

Off topic, but, case in point, because what you are having to do to accomodate a legal process available to all Americans really disgusts me.

Every single American who chooses, should be able to form a legal union and have all the benefits of legal unions available to them.

Thanks fltoo! Amen to that! It would be much easier to figure out where we stand in the means test if we were actually recognized as "married" in the eyes of the law. I mean, it would totally disqualify us because together we make over the median for our state, but there would be no question about it. But get this...I consulted with a bankruptcy attorney and he said that because my partner and I share all of our income, then he would have to actually combine both our incomes as one on the means test and then subtract any separate expenses that she may have from our income to come up with my final income number. So basically he would be treating us as a legal married couple income-wise, but I would still have to file only as a 1 person household with a 2 person income on the means test and that would obviously totally disqualify me with no doubt. So go figure...the law has no problem counting my partner's income as my own in regards to the bankruptcy means test, yet it refuses to let us officially marry and receive all the legal benefits that come with it (except of course for Mass. and now Conn...and hopefully Cali again). How messed up is that?

[DaisyMae]

If you fail the means test, do you need to file BK?

Marriage is nonsense- most fail, 70% of men cheat, 50% of men cheat- why do gay people want to emulate that type of statistical disaster, anyway? A civil union would suffice. Why do you have a joint account? You can direct your account to whomever if you were to die, for example. Can you seperate yourselves and your finances for 6 months, then file? That would end all the problems you state in here from living together...then you could move back together into your wedded bliss. Debt free~

[fltoo]

Not talking about marriage, but legal unions.

But, good idea, separate everything, wait and then file if you can't pass the means test.

[DaisyMae]

Here's a spooky thought:

What if you both file, and both fail the means test because both of your incomes would be considered in both of your CH7 petitions, and are both pushed into CH13!?? YIKES...

[Aaaaah!]

Perhaps not the best advice legal-wise, but I would say fill out the form in the way that is most advantageous to your position. It seems outrageous to me that the government won't give you the rights you deserve in every other area of life and then suddenly when it comes to a bankruptcy petition, all of a sudden the tune changes. Ah, America.