Expert: Terry Leeders - 11/13/2007

Question
Can a prenuptial agreement protect my fiancee's income from my chapter 13 bankruptcy? I have been told that if we get married, our incomes will combine and I will have to pay almost my whole paycheck because he makes so much more than me. This just doesn't seem fair to me... So if we sign a prenup that states his money is only his and mine is mine, they can't take his income into consideration can they?

Answer
You have to complete a form called the "means test analysis" this calculates all household income from all sources, then computes it against the IRS standard income and allowable expenses for your household size in order to determine how much of your debt you would have to pay back in a chapter 13.  If you 'pass' the means test and show that you don't have any disposable household income, then you may qualify for a chapter 7.  You should seek a local bankruptcy attorney to help work you thru this calculation.  A prenuptual agreement has no effect towards a bankruptcy.