If you are married, keep in mind that your spouse if he or she does not wish to file with you will still have to provide income and expense documentation under existing laws. There are some circumstances where the non-filing spouse’s income would dictate a much higher monthly plan payment than the debtor can afford.

Can a married person file a chapter 13 bankruptcy without their spouse?

A married person who files for individual bankruptcy is required to include the non-filing spouse’s income if the couple shares the same household. For a Chapter 13 bankruptcy, your joint income depends on how much unsecured debt you have to repay.

How to file a chapter 13 tax return?

For more information on how chapter 13 laws can help you, contact my office at 847-520-8100. If you are married, keep in mind that your spouse if he or she does not wish to file with you will still have to provide income and expense documentation under existing laws.

How does the marital adjustment deduction work in Chapter 13?

For a Chapter 13 bankruptcy, your joint income depends on how much unsecured debt you have to repay. The marital adjustment deduction lowers the amount of income to be considered in your bankruptcy case. The non-filing spouse’s expenses that are not shared household expenses will count toward the marital adjustment deduction.

Can a married couple file a chapter 13 bankruptcy?

Not every married couple files a joint chapter 13 bankruptcy case. However, the income and expenses of the non-filing party is critical in determining how much the filer has to pay per month to a Chapter 13 trustee and for how long. This relatively new concept stems back to the bankruptcy reform of October 17, 2005.

When did people start filing for Chapter 13 bankruptcy?

This relatively new concept stems back to the bankruptcy reform of October 17, 2005. Prior to that date, a person filing for Chapter 13 bankruptcy was only required to submit his or her income and expenses as well as all of the debts.

Can a chapter 13 trustee give non legal advice?

What people often discover is that the court can only give non-legal advice and most importantly they cannot advise the client on any legal matter. By the same token, the Chapter 13 trustee would much rather see the debtor represented by counsel so that the case will be administered effectively.