Legal Question in Bankruptcy in Wisconsin

Bankruptcy & Marriage; Consulte an Attorney Before Proceding

In community property states such as WI, marriage makes all community property liable for the payment of any marital debts. While this is not as much of an issue in chapter 7 cases, which generally do not consider future income unless it exceeds the State median amount, the income of a new spouse can become a major issue in ongoing chapter 13 cases. There, the chapter 13 trustee may target the new household income and assets of the new spouse as a potential source for repayment of the previously single debtor's liabilities, or as contributions to the support of the debtor, meaning that more of his income should be made available to creditors. Household income is also crucial in determining whether or not a debtor's chapter 7 filing constitutes a substantial abuse under section 707 (b). If so, such a finding can force a chapter 7 debtor to convert his case into a chapter 13 payment plan which goes on for five years and costs a great deal more money. My comments in this online forum are not intended as legal advice for anyone asking a question here unless that person subsequently retains me. Instead, all participants in this forum must obtain and consult with their own attorney prior to acting upon my postings.