Expert: Mark J. Markus- California Bankruptcy Attorney - 2/11/2010

Question
QUESTION: Would signing a 6 month lease on apartment and moving out of parents house a month before filing bankruptcy to pass the means test be in bad faith?  Would the trustee or court know how long I lived in the apartment?  Do they verify where I live?  My parents make too much money and I need to file bankruptcy because I have alot of debt.  I dont know there actual incomes but it is probably too high and I know they wont want to get involved in my bankruptcy and disclose any info to me anyway.

ANSWER: Your parents' income has nothing to do with your eligibility to file bankruptcy.  If they have given you income in the past 6 months, then that would factor into the means test analysis.

There is nothing fraudulent about moving out of your parents' home and leasing an apartment, assuming you are over 18.

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QUESTION: From what I have read any household income is included in means test?....

Answer
Any income you RECEIVE is part of the means test.  If you are utilizing a higher household size in order to increase the median income base, then you have to include the amounts being paid by other members of the household towards the monthly expenses.   This is an extremely tricky area of law, but if you are living with your parents, I doubt you have any responsibility for any of the monthly expenses.  The way to handle this is to either sign a lease with your parents and pay them rent, or move out.   Either way, the amount of income your parents earn has nothing to do with your case.