Legal Question in Bankruptcy in Pennsylvania
Household Income
I need to file for a chapter 7 Bankuptcy. I have gone to two different attorneys in my area and they both tell me because I have a roommate, his income is considered in my case. Why would this be since we are not related in any way. Does he need to find his own place for me to be able to file?
1 Answer from Attorneys
Re: Household Income
The U.S. Trustee has been requiring that people who file Chapter 7 include all of their household income. They take the position that the total income for the house is used for the total expenses so it all must be disclosed to provide a true picture. As a practical matter, the end result is usually the same. All of the income less all of the expenses usually results is less than $500.00 per month.
Another way to handle the matter is to establish a contract with your roommate where you legally divide expenses. In that scenario, you may be able to show only your income and expenses.
I routinely provide the information requested by the Trustee as it is simpler to comply than potentially defend a Motion to Dismiss the case.
I am currently handling clients in Lancaster and Schuylkill counties as well as the six county area surrounding my office. If I can be of help, feel free to call or E-mail on a free initial basis.