' Bankruptcy Marital Adjustment - Law Offices of Robert M. Geller
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

What is the Marital Adjustment Deduction in Bankruptcy?

Marriage joins two people together emotionally, legally, and in many cases, financially. Unfortunately, if you are married to someone struggling financially or you are the one facing financial problems, it might be better to keep some aspects of your finances separate. This can be especially beneficial during bankruptcy.

If you do choose to file for bankruptcy independent of your spouse, it might be a good idea to use the marital adjustment deduction in bankruptcy. The marital adjustment deduction allows you to separate some of your expenses. The benefit is the deduction reduces your spouse’s adjusted gross income, which can make it easier for you to quality for Chapter 7 bankruptcy.

How Does this Work?

First, it’s important to understand what the marital adjustment deduction means and how it works. When you file for bankruptcy, you’ll be subject to a Means Test which is used to determine whether or not you qualify for Chapter 7, and therefore discharge of your debts. The Means Test evaluates your adjusted income and deductions. As a married person, you and your spouse combine incomes and if that total is higher than the means test allows, it means you won’t qualify for Chapter 7.

Click here for more information about the bankruptcy Means Test.

The marital adjustment deduction allows your non-filing spouse to use deductions as part of the Means Test, reducing his or her adjusted income. For instance, say your non-filing spouse pays monthly child support and a student loan payment, neither of which are household expenses.

Other personal expenses that might qualify for the marital adjustment deduction include:

• Credit card payments for cards, only in your spouse’s name
• Gym memberships, as long as you don’t use it
• Cell phone bills, internet charges, or subscription charges such as Netflix that are only used by your spouse
• Attorney’s fees
• Medical expenses incurred by your spouse
• Vacations you did not attend
• Mortgage payments for homes solely owned by your spouse
• Travel expenses for business purposes
• Child support and alimony payments
• Investment accounts
• Business related expenses

Using the marital adjustment deduction can be complicated and your bankruptcy trustee will want to see proof that expenses are legitimate and organized correctly. You’ll want to review with your bankruptcy attorney all of the paperwork associated with your expenses and carefully review the best way to report your income and expenses.

Mistakes Can Result in Bankruptcy Denial

Misreporting your income and expenses on the Means Test can result in your bankruptcy claim being denied, so it’s very important you work with an attorney who understands how to handle marital adjustment deductions.

For more information or to schedule a time to speak to someone about your situation, contact the Law Offices of Robert M. Geller at 813.254.5696 to schedule a consultation.

 

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Are Trusts Protected from Bankruptcy?

Trusts are powerful estate planning tools. They allow people to protect and distribute their assets according to their wishes. This...
Read More

The Truth About Bankruptcy and Buying a Car

The Truth About Bankruptcy and Buying a Car Bankruptcy often carries a stigma of financial ruin and a bleak future....
Read More

How Do Bankruptcy Lawyers Get Paid?

Bankruptcy can be a stressful and overwhelming experience, but having the right legal representation can make all the difference in...
Read More

Do You Lose Your Home When You File for Bankruptcy?

Filing for bankruptcy can be a daunting prospect, especially when it comes to concerns about losing one's home. Your home...
Read More

Can You File Bankruptcy During a Divorce?

Divorce and bankruptcy are personally difficult and also complex legal processes that can have significant implications for your financial future....
Read More

Can You File Bankruptcy on Restitution?

Facing financial struggles can be overwhelming, especially when debts include complex legal obligations like restitution. What is restitution and how...
Read More

Can You File Bankruptcy After a Judgment?

Receiving a judgment against you in a lawsuit can be a distressing experience. This is especially true if you're already...
Read More

Can Back Taxes Be Included in Bankruptcy?

Dealing with back taxes can cause a lot of stress and financial burden for anyone facing financial hardship. If you're...
Read More

Can an Estate File for Bankruptcy?

Many people wonder whether or not an estate, such as the one left behind after someone passes away, can file...
Read More

How Long Should I Keep My Bankruptcy Discharge Papers?

If you've successfully navigated the bankruptcy process and received your discharge papers, congratulations are in order. It's a significant milestone...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions