Do I Have To Include My Spouse’s Income In Bankruptcy, Even If They Are Not Filing?

The starting point in answering this question is yes, all income of the household from all sources needs to be included in your bankruptcy petition. Income from a non-filing spouse needs to be included in both the Current Monthly Income Analysis and the Schedule I projection of average monthly income moving forward. Some income can be excluded from these schedules pursuant to the Bankruptcy Code. See above for a list of these sources of income and a broader explanation of Current Monthly Income Analysis and Schedule I.

The big difference here is when you are filing for bankruptcy and your spouse is not. The Bankruptcy Code specifically only requires that the portion of your spouse’s income that is regularly contributed to the household for expenses of the household of the debtor or debtor’s dependents need be included. In plain language, any expenses paid by the non-filing spouse that are not part of the overall household can be reduced from their income, with only the net amount being scheduled in your bankruptcy petition. This may include such items and the non-filing spouse’s vehicle payment and associated expenses, their debt service on their own debts and their own regularly incurred expenses that are not part of the household. While these may be subjected to some scrutiny by the bankruptcy trustee, they have limited grounds to object because the non-filing spouse is not part of the bankruptcy proceeding. This is commonly referred to as the “marital adjustment” in bankruptcy.

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