When James Parker (not their real names) first started thinking about filing for
bankruptcy, he was hesitant. His credit cards were maxed out, the medical bills from
last year’s surgery were piling up, and he was behind on a personal loan. But there was
one thing holding him back from making the call—his wife, Emily.
His hesitation was not because she wasn’t supportive, she was. Quite the opposite.
Emily had always been the practical one. She had a good job in marketing, they didn’t
share any credit cards, and most of their finances were technically separate.
So when James asked a bankruptcy attorney online if he’d have to include Emily’s
income in his personal bankruptcy, the answer surprised him.
“Yes, you do.”
“But why?” James thought. “It’s not her debt.”
A Joint Life Means Shared Numbers
That weekend, James sat down with Emily to talk it through. “It’s not that they’re making
you responsible for my debt,” he explained. “They just need a full picture of our
household income.”
It turns out, when a married person files for Chapter 7 or Chapter 13 bankruptcy
individually, the court looks at household income, not just the filer’s personal income.
Even if Emily wasn’t joining the bankruptcy filing, her income would still be used to
assess whether James qualified for bankruptcy and what repayment options were on
the table.
The reason? The bankruptcy code requires the court to determine how much
disposable income the household has after covering necessary expenses. This
analysis helps determine eligibility for Chapter 7 or the payment structure for Chapter
13.
“But I’m Not on the Debt”
Emily was understandably worried. “Does this mean I’ll be on the hook for your debt?” Thankfully, the answer was no, not unless she was a co-signer or the debt was joint. In James’s case, all the debt was in his name alone. Her income would be factored into the means test (which determines if James qualified for Chapter 7), but she wouldn’t become liable for his debt. Still, they knew they needed expert help to navigate it correctly. That’s when a friend referred them to The Dellutri Law Group.
Finding the Right Help
From the first call, James and Emily felt at ease. The team at The Dellutri Law Group explained every detail, answered all their questions patiently, and helped them understand how the process could work for them, not against them. James came with questions and left with peace of mind. “I thought bankruptcy meant failure,” James said. “But they helped us see it as a reset, not an ending.”
What They Learned (and You Should Know)
Here’s what the Parkers discovered that could help anyone going through a similar situation:
- Your Spouse’s Income Is Used in the Means Test Even if only one spouse files, the combined household income is used to determine eligibility for Chapter 7.
- You May Still Qualify Deductions for things like childcare, taxes, and necessary living expenses can lower your calculated income. So even if your spouse earns a decent salary, you might still qualify for Chapter 7.
- Your Spouse Doesn’t Automatically Become Liable Unless the debt is joint, your spouse doesn’t take on responsibility for your financial obligations just because you live together.
- Bankruptcy Is a Family Decision While only James filed, it was something he and Emily faced together. Open communication made all the difference.
A New Start—Together
Today, James is on the other side of bankruptcy. His debts have been discharged, and he’s building credit again with a plan in place. Emily never had to join the filing or worry about her credit score. They even joke now about how they learned more about household budgeting during bankruptcy than in their first five years of marriage. “We’ve never been more in sync about our money,” Emily said. “It’s hard, but it brought us closer.”
Don’t Go It Alone
If you’re in a similar position and wondering what role your spouse’s income plays in your personal bankruptcy know that you’re not alone. And you don’t have to figure it out on your own. The Dellutri Law Group has helped thousands of families like the Parkers take control of their financial future. With almost 1,300 five-star reviews, they’ve earned a reputation for being knowledgeable, compassionate, and deeply committed to helping people get a fresh start. Contact The Dellutri Law Group today for a free consultation. Bankruptcy doesn’t have to be the end; it can be the beginning of a better chapter. 239-939-0900