QUESTION
Can I get married to my live in girlfriend after filing Chapter 13 bankruptcy?
Asked on Jul 08th, 2014 on Bankruptcy - Indiana
More details to this question:
My Chapter 13 was just confirmed and I plan on marrying my live in girlfriend soon. She has not been working and I have claimed her and her child as dependents for the past 2 years. She is getting a job after we marry, how will that affect my payment plan since I had their expenses included in my bankruptcy filing? Should we file taxes separately if she is going to get money back on her tax return?
10 ANSWERS
If you used an attorney to file your current bankruptcy case you should be asking the attorney these questions. If you did not use an attorney you should hire one. Your situation poses too many variables to be addressed in an online message board.
Answered on Jul 11th, 2014 at 3:08 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Income of a non-debtor member of the debtor's household can be the basis for the trustee or a creditor to move for a modification of your Chapter 13 plan. A modification of your plan might be required.
Answered on Jul 10th, 2014 at 4:24 AM
The way you file your taxes has no bearing on your responsibilities in your Chapter 13 case. I am assuming from your explanation that you already disclosed the presence of your girlfriend and her child in your household when you filed for Chapter 13 bankruptcy. Therefore, getting married does not change the economics of your household. However, if she gets a job, whether or not you are married, you are obligated to report that additional income into your household, because it will offset some of the expenses you have in your budget. As for the taxes, you can file jointly or separately, whatever is best for you tax-wise, but you are required to submit to the trustee the tax return on which your income was reported. If that return shows a refund, then you may be obligated to pay that refund to the trustee unless you have already exempted it in some way.
Answered on Jul 09th, 2014 at 2:58 PM
Bankruptcy Chapter 7 Attorney serving Los Angeles, CA
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The Law Offices of Peter M. Lively
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You should consider entering into a prenuptial agreement whereby her income is her separate property. Otherwise you are risking that your plan payments may be increased due to community property law. You should consult with an tax preparer regarding how best to file tax returns so as to minimize your refunds.
Answered on Jul 09th, 2014 at 2:36 PM
Ask your counsel first, but my opinion is get married. This should not affect your Chapter 13.
Answered on Jul 09th, 2014 at 2:23 PM
Aye, there's the rub! When you get married, your spouse's income must be included as part of your household income and can affect your plan payment.
Answered on Jul 09th, 2014 at 1:55 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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You definitely should file taxes as married filing separately. However, the Chapter 13 trustee might notice and ask for her tax return as well in an effort to increase the percentage of your debts you pay back. Your girlfriend should contribute some of her income to a 401k plan, for example, to minimize the exposure. However, any change in the amount of the monthly plan payment is prospective that is, takes effect only after the trustee asks for it, which won't happen until after the trustee receives a copy of your tax returns.
Answered on Jul 09th, 2014 at 12:50 PM
Probate Attorney serving Friendswood, TX
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Law Office of Melissa A. Botting
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Congratulations! You may get married while you are bankruptcy. You will need to inform your trustee. If she then gets a job, you would handle it the same way you would handle a raise or new job on your part. You are obligated to let your trustee know of changes in your situation. Should you win the lottery, the trustee would file a motion to modify your plan to repay your debts. Most small changes to your condition do not induce modifications of the plan. If you need to modify your plan over the next years, her salary will be considered at the modification hearing. As long as you are current with the trustee on your plan payments, you and your girlfriends should receive your tax refunds.
Answered on Jul 09th, 2014 at 12:07 PM
yes there is no problem with doing that
Answered on Jul 09th, 2014 at 11:36 AM
Family Law Attorney serving Indianapolis, IN
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Arany & Associates
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If your bankruptcy is lodged in the Southern District of Indiana, you have signed and your attorney has signed and filed a so-called "Rights and Responsibilities" form. You promised to do several things after your case was filed. Here is one of those things, verbatim: "Contact the attorney promptly with any information regarding changes in employment, increases or decreases in income or other financial problems or changes." It would be best for you to let your attorney know what is happening so that he/she can help you plan, in advance, how to best allocate the income that will come into your household after your fiance gets that job. Good luck!
Answered on Jul 09th, 2014 at 11:36 AM