Question
How can I still get enough money if I am filing for bankruptcy and legally separating from my husband?
We have been separated and have lived apart for over a year. I have completed a Chapter 7 Bankruptcy and my husband is filing a Chapter 13 Bankruptcy. The attorney is telling us that since we are not divorced, they have to include my income in his Bankruptcy and they will not allow a deduction for his $1500/month spousal support payments in calculating his repayment plan. When we started the Bankruptcy process, we were given a different story from the attorney. What is the correct information? If they do have to include my income, wouldn't they have to include my expenses / rent payments? Without my income, his repayment plan would be a few hundred dollars. By including my income, they end up "taking away" the amount of spousal support I get plus extra money and the repayment plan becomes $2000/month. This literally means that he would not have money for spousal support and I would have no money to pay my rent. Basically, I would end up homeless. They're telling us to get a quick divorce, but that causes other family / financial issues. Please help! I'm so discouraged and don't want to be pushed into making a hasty decision.LawQA.com Answer Library
Answered By: Bankruptcy Law office of Bill Rubendall
Family support orders are not affected by bankruptcy. The support you receive must be kept in place if your spouse files for chapter 13 or chapter 7. Consult an attorney for your rights in connection with collection of support.
Answer Applies to: California
Replied: 9/1/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: California
Replied: 9/1/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Janet A. Lawson Bankruptcy Attorney
Your lawyer is wrong. If you live apart your income does not count. The lawyer is right that the 1500.00 is not a deduction against his income because there is no court order. You can easily get a court order by filing a dissolution action and stipulating to the spousal support. Problem can be solved in about 45 days.
Answer Applies to: California
Replied: 9/1/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: California
Replied: 9/1/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: The Schreiber Law Firm
When you file a Chapter 7 bankruptcy, you do not have to include the spouse's income if you live in separate households. That is not true with a Chapter 13. The income of both spouses, living together or not, is included. That would be why the income was not considered in the Chapter 7, but is in the Chapter 13. If a Chapter 13 was not originally contemplated and two Chapter 7 filings was instead, then at that time the information provided by the attorney was accurate. I would presume the reason why the Chapter 13 trustee will not allow the $1,500 spousal support is that it is not court ordered. A voluntary payment of spousal support does not count for an expense in a Chapter 13 - which is likely why they are saying to get a divorce so the spousal support is part of a dissolution court order and then can be included in the expenses. You can use your expenses in calculating the disposable monthly income in a Chapter 13, but it is included in determining the current monthly income, but it sounds like the spousal support is affecting the bottom line number as it not an allowed deduction on his side.
Answer Applies to: California
Replied: 8/31/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: California
Replied: 8/31/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
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