Household Income of relatives and the Means Test

[GoingDown]

This is a question that I was recently asked by a relative, and I thought I would ask the forum for the answer...

My cousin recently was injured in a car wreck and has been unable to return to work and many of his credit card bills are now seriously past due. He is 26 and is still living with his parents.

Would his mom and dad's income have to be included as a part of the Means Test for him? His current income is zero dollars per month because he is unemployed. But his parents' income is $80,000 per year.

They are NOT co-signers for any of his debt, and will NOT be filing bankruptcy. Will their household income become an issue for his bankruptcy case?

[lrprn]

Would his mom and dad's income have to be included as a part of the Means Test for him? His current income is zero dollars per month because he is unemployed. But his parents' income is $80,000 per year.

Yes, case law opinions in cases like this have stated that since all three are living in the same household, your cousin's parents' income contributions towards his share of the housing and living expenses will be included in his initial Means Test calculations but then those parental financial contributions will be subtracted back out later in the Means Test.

Your cousin needs to make 3-4 free consultation appointments with bankruptcy-specialty lawyers in his area to find out what the best options are for him in his situation. He's young - you don't want to fire the bk bullet unless there really is no other choice left.