QUESTION
Why do creditors want my pay stubs if my wife is filing a solo bankruptcy?
Asked on Nov 08th, 2011 on Bankruptcy - Kansas
More details to this question:
My wife is filing a solo bankruptcy. They said they need my pay stubs. Are they looking for my weekly gross income? Just wanted to know what they're looking for from me on my pay stubs?
15 ANSWERS
Bankruptcy & Debt Attorney serving Jackson Heights, NY
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Ruiz Law Group PC
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Since you reside together the court usually wants to know the total household income to see if you fall below or above the median income.
Answered on Nov 10th, 2011 at 10:08 AM
Even though your wife is claiming bankruptcy, the Bankruptcy Trustee will want to see your gross income because when you are married, both of your incomes are considered when looking at what the financial situation is of the bankruptcy filer. If your wife is unemployed, with a large amount of debt, but you make six figures and help support her, then the creditors will assume that you are also able to pay for her debts as well, especially for your spouse.
Answered on Nov 09th, 2011 at 3:49 PM
Seth D. Schraier, Esq. Law Office of Seth Schraier 3647 Broadway Suite 4G New York, New York 10031 Cell: (914) 907-8632 www.SchraierLaw.com
Banking Attorney serving Spokane, WA
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Law Office of Shane P. Coleman
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Because your income is community income and therefore your income needs to be considered for your and your spouse's ability to repay any obligation.
Answered on Nov 09th, 2011 at 1:30 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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There is no reason for a non-filing spouse to provide pay stubs to creditors.
Answered on Nov 08th, 2011 at 10:58 PM
Glen Edward Ashman
If you live together, federal law requires your income to be looked at as to whether she can file. If you refuse to cooperate, she likely cannot file.
Answered on Nov 08th, 2011 at 10:47 PM
Whenever only one spouse files bankruptcy, the court is looking at the income of the entire household and the martial power to pay the bills. After all, it wouldn't be fair to let a wife who does not work file bankruptcy on consumer debt if her husband brings in $250,000 year - for example. The paystubs are used for the Means Test in Chapter 7 or calculation of disposable income in Chapter 13.
Answered on Nov 08th, 2011 at 10:40 PM
Daniel James Wilson
It is not the creditors. Your attorney needs the information in order to do the Means Test analysis. In addition, every filing is audited by the US Trustee's office who need to see your wife's pay advices to determine household income.
Answered on Nov 08th, 2011 at 10:36 PM
Family Law Attorney serving Indio, CA
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Law Office of Xochitl A. Quezada
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I don't understand why creditors would ask for your husband's paystubs. You might need it to calculate your husband's monthly income for the means test but you don't attach his paystubs to the petition.
Answered on Nov 08th, 2011 at 8:37 PM
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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Your paystubs are required to verify your income for your wife's means test.
Answered on Nov 08th, 2011 at 6:55 PM
Bankruptcy Chapter 7 Attorney serving Fort Collins, CO
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The Salas Law Firm LLC
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Yes, you must include the entire family gross income (regardless of who is filing) to determine if either member of the household qualifies for chapter 7 bankruptcy.
Answered on Nov 08th, 2011 at 6:20 PM
Chapter 7 Bankruptcy Attorney serving Huntington Beach, CA
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Law Offices of Robert Parkinson Taylor
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It's the BK court that wants your pay stubs. Even if only one spouse files, you must qualify as a couple income wise. Let's say you have no kids and your wife files, as a couple you must have made less than $30.750.00 over the past 6 months or a presumption arises that she is abusing the system. I don't believe this is fair myself but that's the just way it is.
Answered on Nov 08th, 2011 at 6:20 PM
judith runyon
It is a community property state, so your income has to be included in her bankruptcy.
Answered on Nov 08th, 2011 at 6:19 PM
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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Because the law REQUIRES that BOTH spouses' incomes are used on the MEANS TEST even if only ONE spouse is filing when the spouses live together and haven't separated. The last six months of average gross monthly income (i.e., if a November filing, then ALL of the income from May 1st - October 31st is considered) is used to determine the CMI (current monthly income). Pay stubs are how you prove what you actually make.
Answered on Nov 08th, 2011 at 6:19 PM
William P. Turner
"They" are not your creditors as such here, but your Wife's bankruptcy attorney, who needs to list your income in her individual bankruptcy per the rules.
Answered on Nov 08th, 2011 at 6:16 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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The Trustee is the one that needs your paystubs but the creditors can also ask for them to verify that your wife reported all the household income correctly. Your income must be reported also and counts if you are married and live together. You have a legal obligation to support your wife and she has a legal obligation to support you plus California is a community property state and half of your income is hers and vice versa. The stubs are used to calculate both gross income and deductions for taxes, medical insurance, 401k contribution, and other things that are allowed to be deducted to calculate how much your wife would have left to pay creditors and even if she is eligible for Chapter 7.
Answered on Nov 08th, 2011 at 6:16 PM