One of the trickier issues in filing an individual bankruptcy is how to handle the situation in which the debtor is married, but his or her petition is individual as opposed to joint, i.e. the spouse does not join in the filing for bankruptcy.  Of particular importance in this scenario is how to properly account for the debtor’s income and expenses on the B22A (‘Means Test’) calculation form.  In general, there are 3 possible scenarios when the prospective filer is married:

 ‘Married, filing jointly’: This is the most common, and conceptually the easiest to handle.  As both spouses are participating in the bankruptcy, they are thought of as one economic unit, and so will have both incomes included on the form B22A (‘Means Test’) schedule.  Likewise their combined expenses should be reflected on the Schedule J (statement of) Current Expenditures (i.e. the detailed list of monthly living expenses such as food, clothing, shelter, utilities, taxes, transportation, medicine, etc.). 

‘Married, not filing jointly, without declaration of separate households’: This situation is a little less common, and hence a little trickier.  The debtor is filing without the participation of his or her spouse, who nevertheless does reside with the debtor.  Because of this fact, the non-filing spouse’s gross income must be included with that of the debtor’s for purposes of the means test calculation (Likewise, the non-filing spouse’s expenses must be listed on the debtor’s Schedule J, thereby enabling a fairer evaluation of the financial position of the debtor’s household).  This means that the debtor may run afoul of the means test even if his or her income is far below the applicable means test income limit if the non-filing spouse’s income, when added to that of the debtor’s, results in a total in excess of the applicable limit.  Equally frustrating for a would-be debtor is when his or her income might be hopelessly insufficient to cover the debts in his or her name but, when the non-filing spouse’s income is factored in, the combined income is adequate to cover the combined household expenses.  This situation will trigger a 707(b) trustee objection just as surely as would a combined gross income in excess of the applicable means test threshold figure.

 ‘Married, not filing jointly, with declaration of separate households’: By checking this box, the debtor is literally declaring, under penalty of perjury, that “My spouse and I are legally separated under applicable non-bankruptcy law or my spouse and I are living apart other than for the purpose of evading the requirements of § 707(b)(2)(A) of the Bankruptcy Code.”  This means that the debtor should be prepared to testify under oath, and to also document the fact if requested to, that the non-filing spouse’s income is truly not available to contribute toward the debtor’s expenses, and that the debtor is not merely pretending to be separated so as to exclude the spouse’s income from the means test calculation.  The debtor’s petition should include neither the non-filing spouse’s income (Spousal, child, or other support payments, if received by the debtor from the non-filing spouse, are listed by debtor as a separate income item) nor expenses, which by virtue of the debtor’s declaration are presumed to be applicable to an entirely separate household. 

Of course, be sure to seek the advice of an experienced bankruptcy attorney before you decide upon a course of action on this or any other bankruptcy issue.

Bankruptcy can make the person’s life miserable.  This is one of your worst nightmares.  It can turn your life upside down.  In these times, several individuals are slowly traveling the road of bankruptcy.  Especially those who do not care how they spend their hard-earned money, they are just putting their lives in danger.  With the current economic depression, individuals are encouraged to slow down their expenditures and learn to save more.  If they will continue to be stubborn, bankruptcy will definitely haunt them.  And if this happens, their loved ones are the first ones who suffer the consequences.

When you are in this situation, you have to be ready for all the things that come in your way.  This will surely be a tough fight.  Financial institution will definitely reject you.  Apparently, no one wants to borrow money to someone who is penniless.  It only implies that a person’s purchasing ability is deeply affected by bankruptcy.  Priorities are organized, need and wants are separated.  Of course needs must be met first before fulfilling the rest.  The usual lavish way of living should be toned down.

Buying personal investments, such as real estate, seem to be unattainable at this time.  Although you have your savings to purchase one for yourself, you will have hesitations if you are going to do it or not.  You will think that there are more important things than getting a property.  Before entering into a new loan or mortgage, you have to settle all your existing financial obligations.  Otherwise, you will just pull yourself to the grave.  You are just leading your way to bankruptcy. 

On the other hand, if you are really decided to purchase a house, there can be several ways to do it.  If you happen to have an existing home loan, you can stay away from foreclosure.  Mortgage modification or credit refinancing is the best solution to this.  You can still save your house. 

Usually, if you are looking for financial support, banks require you to be financially stable before they grant your loan.  In this way, lending institutions are secured of your capability to pay them.  If you have enough savings in your bank account, you can present this to them to prove that you have a stable income.

When getting a loan, you have to show the necessary documents that will guarantee your stability.  Normally, lending companies ask for collaterals.  This is their way of getting your assurance.  And if you conquered bankruptcy, you will be confident enough on providing them your collateral.  Hence, real estate brokers are not bothered by the current economic condition today.  They are positive about give hopeful homeowners the chance to own a home. 

Therefore, bankruptcy can greatly influence the purchasing power of the person.  May it be buying a real estate or just purchasing what you want, you will have to assess it first.  Bear in mind, when you are financially drought every centavo counts.  Thus, a thorough evaluation must be done before you invest.