Do Contributions from Debtor’s Mother Constitute Regular Income to Allow for Chapter 13 Eligibility?

Yes, according to a Wisconsin bankruptcy court. The court held that the Chapter 13 debtor’s income, which consisted solely of contributions from her mother, was consistent and stable enough to qualify the debtor as an “individual with regular income” under Code § 109(e).

The court held that where the mother, who lived with the debtor, had made those contributions for eight years before the debtor filed her bankruptcy case, and the mother filed an affidavit stating that she had “nowhere else to live,” that “our living arrangements will not change,” and that she would continue her contribution for at least the five-year term of the debtor’s Chapter 13 plan.

In re Kolchinsky, 2018 WL 5779861 (Bankr. E.D. Wis., Nov. 1, 2018)

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