In the wake of the recent US Supreme Court decision ensuring equal rights for same-sex couples, the Justice Department has issued new rules to allow them to file a joint Bankruptcy case if they are legally married.
According to a Wall Street Journal article, President Obama’s Justice Department will treat married gay couples equally as they treat straight couples.
What does this mean for same-sex couples with financial problems? It is both good and bad news. The good news is that same-sex couples can save on legal fees and court filing fees, because they only have to file one case. But, it can create problems for couples who have higher incomes. In the Bankruptcy Means test, you are required to include all members of your household, and your spouse’s income. Now, because if they are legally married in a state that allows gay marriage, they are recognized as married in all 50 states by the Federal Government, they have to include their non-filing spouse’s income in the means test. This could push some couples into Chapter 13 repayment plans.
So, with the benefits come all of the pitfalls of being legally married in the eyes of Bankruptcy Law. I have counseled many same-sex couples in financial problems, and would be happy to help navigate the new rules, and your options.
If you have questions about how the Bankruptcy Means Test affects you and your family, call us. We can guide you through the best solution for your situation.
Daniel J. Winter
BankruptcyLawChicago.com
Offices in Chicago, Oak Lawn, Gurnee, and Skokie, Illinois.
