Will the trustee take into consideration the fact that I retired 3 months ago and our income has been cut in half from now on?

You are asking about what a trustee will take into consideration and this implies that you have already filed a Chapter 7 case. Trustees don't have anything to do with determining issues relating to your budget or the means test, which I think (although it is not clear) is what you are inquiring about. Just because your income for the 6 calendar months prior to filing is above the median income does not mean you won't qualify for a Chapter 7 case.  It's a very complicated analysis with numerous different factors being taken into consideration. If you are married, you must include all income, expenses, assets and debts of you and your spouse regardless of whether they are joining in the filing.  I'm not sure what you mean by "go down the drain", but your husband can continue his self-employment after the case is filed.  The key is going to be what assets he has from his business now (i.e. rights to residuals, copyrights, royalties, receivables, etc.) and whether those can be protected (which will depend on a number of factors, including the value of all your other assets, which state's exemption laws apply in your case and more). Bankruptcy is a very complicated area of law and your questions can only be answered after obtaining all the relevant information.   The bottom line is you need to have a consultation with an experienced bankruptcy attorney to go over all the relevant information (income, expenses, assets, debts) to determine what you are eligible for and which option is best.