Do I Have to Report My Husband's Income When Filing Bankruptcy for Myself?
- Form B22 is a mandatory document you must include with your bankruptcy paperwork. The document is known colloquially as the means test. When you complete the means test, you must calculate the average of all your household income for the six month period prior to the month in which you file your case. If you file in August, for example, you must calculate the average of your income from February 1 through July 31. The income is your household income, and if you are married, you must include your spouse's income in the calculation. The means test will determine whether you qualify for Chapter 7, or if you are in a Chapter 13, how much you will have to pay into the plan.
- Your bankruptcy paperwork must also include a set of schedules. Schedule I sets forth your actual monthly income, and Schedule J sets forth your actual monthly expenses. The difference between the net amounts on Schedule I and Schedule J can determine whether you qualify for Chapter 7 or how much you must pay into a Chapter 13 plan. Like the means test, your Schedule I must include your income from all sources, including the income your spouse brings into the household.
- If you are married but separated, you can file an individual bankruptcy and exclude your spouse's income from both the means test and your Schedule I and Schedule J. The court may require that you prove your separation.
- Your spouse's income, while it must always be included on Schedule I, may be excluded from the means test if it consists of Social Security income or if your spouse is a disabled veteran or an active duty service person.