The number of dependents a debtor has is significant, as it determines whether the debtor passes the means test and qualifies for a Chapter 7 bankruptcy.
The means test looks at a debtor’s household income from the previous six months prior to the debtor’s bankruptcy filing, and compares it to the median household income of the state the debtor resides in. If the debtor’s household income is above the household median income, then the debtor does not qualify for a Chapter 7 bankruptcy. The number of dependents a debtor has will affect their household size and thus influence whether the debtor passes the means test. Moreover, a debtor filing for bankruptcy must complete Schedule J of their bankruptcy petition and schedules. Schedule J lists all of the debtor’s household expenses. A debtor must provide their number of dependents in Schedule J of the petition and schedules. The number of dependents a debtor has will determine the debtor’s household size, which can impact the value of allowed expenses the debtor’s family may be allowed to have when filing for bankruptcy.
A dependent is an individual who requires and receives financial support from the debtor on a regular basis. Dependents may be adults or children. Dependents are usually young children, grandchildren, or an elderly family member. Typically, if a debtor provides for at least half of the support of that individual, that individual is considered to be the debtor’s dependent. A debtor’s minor dependents can include individuals who are under the age of eighteen, for whom the debtor pays at least half of their support expenses, such as food, education costs, and living costs. A minor dependent can include a debtor’s own children, as well as a debtor’s spouse’s children. The child does not necessarily have to reside under the same roof as the debtor in order to be a dependent. A dependent may be a child who only seasonally resides with the debtor and for whom the debtor pays child support to. A dependent may also be a minor child who is a niece or a nephew for whom the debtor is financially supporting. An adult may also be considered a dependent of a debtor. An adult can be considered a dependent, if the adult is elderly such as a grandparent or a parent. An adult can also be considered a dependent if the adult is a child of the debtor and living at home due to special medical needs. However, an adult child who is living with the debtor and is working part-time, may not be considered a dependent.
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For advice in determining the number of dependents you have before filing for bankruptcy, you should consult with an experienced bankruptcy attorney. Come see us at our new office in St. Paul, Minnesota, or come visit us at LifeBackLaw.com!
