What Happens if a Non-Filing Spouse Refuses to Disclose Their Income?

According to Robing Miller of CBAR, if a Chapter 13 debtor is unable to provide information about his non-filing spouse’s income, expenses, and contributions to the household, they were required to propose a Chapter 13 plan that paid unsecured creditors in full – despite the fact that the debtor’s spouse allegedly refused to provide the required information.

Whether or not the debtor had access to information concerning the nonfiling spouse’s contribution to the household, there was no way of knowing whether he was contributing all of his “current monthly income” to the plan without knowing that information.

As a result, the Bankruptcy Court held that the debtor’s compliance with Code § 1325(b)(1) could only be assured if he paid all unsecured creditors in full.

In re Rodgers, 2014 WL 4988388 (Bankr. W.D. Mo., Oct. 7, 2014) (case no.4:14-bk-41824)

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