QUESTION
Bankruptcy- how is my boyfriends income relevant?
Asked on Jun 12th, 2020 on Bankruptcy - Maryland
More details to this question:
I have supported my boyfriend for about 3 years financially. I’m the sole earner. He finally got a job and lost it due to COVID-19. He’s not eligible for unemployment YET. He is waiting to hear back from the agency. If he gets unemployment benefits, he will be making A LOT more than ever before because of the COVID-19 unemployment increases. If he suddenly gets 3 months of back pay, or suddenly gets approved and has a decent income, what happens to my bankruptcy status? Do I report this to anyone? I’m currently at ZERO disposable income after paying our joint expenses and medical bills but that is my opinion I don’t have the courts opinion as I haven’t filed yet. I’m just worried that they will take away all of my money while he has unemployment benefits, then when he loses them or we break up I’ll be screwed.
1 ANSWER
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His income will not be considered for what is called the "Means Test" and will not effect your filing staus as far as your eligibility goes for you are not married. However, if his extra income effects any of the catagories of expenses you list in Schedule J, it could.
For instance, if he were to pay more to your portion of the rent (which I presume you currently split), or if he were to pay any other expsenes on your behalf, it would lower the amount you claim you pay for that expense and, consequentlly, change your income to debt ratio. If his new contributions changes the numbers so much that you are now solvent, that is, having an excess of income at the end of the month after you paying for your listed expenses, you will no longer be elegible to file a Chapter 7 bankruptcy, presuing that is the chapter you are filing under.
Answered on Jun 15th, 2020 at 8:31 AM