Your Family Size Matters In A Bankruptcy

  • Family Size Matters

Your Family Size Matters In A Bankruptcy

Call: 888-297-6203

When you file for bankruptcy, the Jacksonville Bankruptcy Court, considers the person who lives with you and the treatment of that person differs depending on the bankruptcy chapter you file for. This does not imply that the person’s character matters. The thing that actually matters is the dependency of that person on you for most of his or her care, and if he or she isn’t dependent on you, his or her regular household contributions will matter.

Any money paid to or on behalf of the filer of bankruptcy is treated as a regular contribution to the household. For example, the payment of someone’s monthly phone bills by their mother. Such contributions free up some extra money for the debtor and thus the debtor has more money for paying bills. Every regular contribution counts, most of which are made by the people living in the same home-like girlfriends, boyfriends or roommates.

Your bankruptcy attorney must have the basic information about your income and should also conduct the cursory means test, before deciding the best bankruptcy chapter option for you. The bankruptcy means test was created in 2005 by the U.S. Legislature. Debtors, who wish to file for a Chapter 7 bankruptcy, must pass this test, where they are required to show that their income is less than the average for their size of the family of that state. Generally, this test is required, but there are exceptions for some business holders and active military.

The average income of American households by family size, known as the Median Income, is published by the IRS every year.

You and your dependents determine your family size, which usually includes spouse, elderly parents, children or other relatives. Unmarried partners and roommates are exclusive to this list. While calculating the size of your family, you must include your household members as well as any income they make. So, if you and your spouse make $30,000 each, your combined income will be $60,000 for a family size of two.

In Florida, the current average income for a family of two is $49,729. Thus, your higher income will make you eligible to qualify for a Chapter 7 bankruptcy. However, in case of a roommate, who pays $500 every month for bills, your $30,000, plus $6000 ($500 x 12 months) would make your household income. Now, you would be eligible for Chapter 7, as the average income in Florida for a family size of one is $40,766. Several deductions from the income of the debtor can complicate these calculations.

The size of your family has a huge impact on your bankruptcy options. Thus, it is better to take professional help to survive the complicated process of bankruptcy. Contact the Recovery Law Group (Los Angeles & Dallas, TX) at www.recoverylawgroup.com or on 888-297-6203, for expert guidance on bankruptcy-related queries.


2019-11-12T12:37:12+00:00