What is our holdhold size...

[PhxGuy520]

My girlfriend just got a notice of wage garnishment. She had been considering BK in the past, but waited to see if the garnishment would actually happen. We are trying to complete the means test, but we appear to be in a grey area. We live together, have two kids but are not married.

How do we determine what income bracket she falls into? I claimed the kids on my taxes last year so I assume she would be considered a house hold of one????

Is she a household of 4 and has to include my income? (that doesn't seem correct, but who knows)

Is there anyway to account for the money should pays towards the raising of our children?

[HHM]

Are the kids biologically hers, or has she adopted them. If yes, then I think she can claim to be a household of three (her plus the 2 kids), if not, then she would be a household of one.

If she is considered a household of 1, does she fall under the median state income for a household of 1?

[SinkingFast]

It's my understanding that BK Code goes pretty much the same way the IRS does. If you claim the kids on your taxes, then GF is a Household of one. Had she been claiming the kids, then she'd be a Household of 3.

Remember, the BK Court is gonna get your GF's last 2 years of income taxes. The Trustee might find it odd that GF files Single with no dependents on her taxes yet claims a Household of 3 for BK purposes.

As always, be sure to ask attny's this question during Consults. Consults are generally free and it's not a bad idea to visit 2-3 attnys prior to filing BK.

[LostOne0069]

the other question to ask is... does it matter? If she's below the median income for both 1 person and 3 person families, then just list it as a 1 person and go on with life... I can't see the BK court or trustee complaining... since it wouldn't matter anyway.

Of course... the best thing to do would be to ask an attorney.

[PhxGuy520]

The situation is tricky. She is the mother of our children, no adoption.

For most of this year she made 34k, so she was below the median income for Arizona. Three months ago she got a new job and went to 45k. She is now about 8k above the median income. So if they do the 6 month look back she will be pretty some where in the middle. However she is salaried so I guess they argue she is really 45k, so well above it.

If she is considered a family of three she is well below the median income for Arizona.

She is calling a couple lawyers to get a meeting setup. All of them point her to the means test online, but we just thought of this grey area questions and thought someone might have experienced this with all the "domestic partnerships" out there today.

[SinkingFast]

So Beyond Broke was in the same situation as you. She filed single, Pro Se in NY. Here's a link to a thread where the issue of Household # was discussed:

http://www.bankruptcyforum.com/showt...?t=5766&page=2

SBB talks about her tax filing status in Post #21 on the 2nd page. SBB claims their kids on her income tax returns every year due to getting a bigger refund that way.

This is definitely a question you wanna ask attnys. Consults are generally free. Schedule 2-3 Consults with different attnys to get different points of view.

[PhxGuy520]

So Beyond Broke was in the same situation as you. She filed single, Pro Se in NY. Here's a link to a thread where the issue of Household # was discussed:

http://www.bankruptcyforum.com/showt...?t=5766&page=2

SBB talks about her tax filing status in Post #21 on the 2nd page. SBB claims their kids on her income tax returns every year due to getting a bigger refund that way.

This is definitely a question you wanna ask attnys. Consults are generally free. Schedule 2-3 Consults with different attnys to get different points of view.

Very interesting thread you sent me, thank you. It sounds like my income would not be considered in the BK, but if they go by tax filing then she would not be household of three like I hoped she would. Darn it.

America - the best laws money can buy.

[Grace]

There's nothing wrong with the laws. Since you're not married only one of you can claim the children as dependents on your taxes. Since you've been doing it, your girlfriend can't do it now to help out in bankruptcy. There must be a reason why one of you always claimed them and the other didn't.

[PhxGuy520]

There's nothing wrong with the laws. Since you're not married only one of you can claim the children as dependents on your taxes. Since you've been doing it, your girlfriend can't do it now to help out in bankruptcy. There must be a reason why one of you always claimed them and the other didn't.

Nothing wrong with the laws huh???? Please, you think "the people" of this country asked for this change? These laws were put in place so large credit card companies (not to mention collection companies) could make another few million off people like me. This was accomplished by these same companies spending all that money they made of US in the past lobbing OUR elected politicians. Wake up!

I bet you didn't even think about how consumer bankruptcy was completely overhauled while commercial bankruptcy was largely unchanged. Hmmmm wonder why????

Why dont you look up some of the larger collection companies and see how this has impacted THEIR bottom line. Collection companies are more profitable then EVER. All thanks to OUR goverment. (well it used to be OURS)

America - The best laws money can buy!

[HHM]

Nothing wrong with the laws huh???? Please, you think "the people" of this country asked for this change? These laws were put in place so large credit card companies (not to mention collection companies) could make another few million off people like me. This was accomplished by these same companies spending all that money they made of US in the past lobbing OUR elected politicians. Wake up!

I bet you didn't even think about how consumer bankruptcy was completely overhauled while commercial bankruptcy was largely unchanged. Hmmmm wonder why????

Why dont you look up some of the larger collection companies and see how this has impacted THEIR bottom line. Collection companies are more profitable then EVER. All thanks to OUR goverment. (well it used to be OURS)

America - The best laws money can buy!

Calm down a little , its pretty obvious Grace thought you were talking about the marriage and income tax issue, not the bankruptcy law. I think we can all agree the bankruptcy laws are not good, but even when I red your post, I thought you were referring to tax law.

In event, Grace has a valid question, what were the reasons for you claiming the kids vs her (I would suspect because you have more taxable income, correct?)

[PhxGuy520]

Calm down a little , its pretty obvious Grace thought you were talking about the marriage and income tax issue, not the bankruptcy law. I think we can all agree the bankruptcy laws are not good, but even when I red your post, I thought you were referring to tax law.

In event, Grace has a valid question, what were the reasons for you claiming the kids vs her (I would suspect because you have more taxable income, correct?)

Fair enough. Yes I was talking about the BK law. Not the tax laws. I am sure we are all getting screwed there too, but dont know enough about those laws to comment.

To answer the question, yes I had more income so I claimed the kids.

[CindyLou]

http://www.legalconsumer.com/bankruptcy/bankruptcy-means-test.php?ZIP=70801#QuickTest

use the link above and you will need to change the zip code and family size. Income if based in the ACTUAL total of the last 6 months divided by 6 then multiply by 12. The longer you wait the closer to being above the median. This page also addressed domestic partners and roommates.

[PhxGuy520]

http://www.legalconsumer.com/bankrup...0801#QuickTest

use the link above and you will need to change the zip code and family size. Income if based in the ACTUAL total of the last 6 months divided by 6 then multiply by 12. The longer you wait the closer to being above the median. This page also addressed domestic partners and roommates.

Just to let everyone know in case this comes up again. According to the lawyer she saw today. It's EVERYONE in the home, blood or not. Regardless of the relationship.

Which means if you have a roommate that makes good money and you want to claim BK better move out first.

I have supported Bush in most of his decisions, but he REALLY screwed over the American people on these laws. Not to mention this all started for us because some judge sided with a CA that was suing on a CC account that charged off almost 5 years ago. YUP past the SOL by 2 years, but I am sure the CA could line his pockets far better then we could.