The Means Test: "Household" Size and Contributions

Miami Personal Bankruptcy Lawyer Jordan E. Bublick has over 25 years of experience in filing Chapter 13 and Chapter 7 bankruptcy cases. His office is centrally located in Miami at 1221 Brickell Avenue, 9th Fl., Miami and may be reached at (305) 891-4055.  www.bublicklaw.com

The bankruptcy code's "means test" looks to the size of the debtor's "household." The bankruptcy code does not define what constitutes a "household."

Census Bureau Definition
Some bankruptcy courts hold that the Census Bureau's definition of "household" provides the most appropriate definition of household for use in the means test. The Census Bureau defines "household" as "all of the people, related and unrelated, who occupy a housing unit"such as a house, apartment, group of rooms or single room that is intended for occupancy as a separate living quarters." These Courts hold that the word "household" and not "family" and did not intend to limit household size to only household members related by blood, marriage or adoption.

Internal Revenue Manual Definition
In some cases, parties argue that the Internal Revenue Manuel's ("IRM") definition of "household"should be used. The IRM does not define "household" but indicates that the number of persons allowed under the national standard expenses should generally be the same as the number of dependents on the taxpayer's latest tax return.

Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com