Further Thoughts on Gay Couple Bankruptcy Filing

WOW, Jon. I love the internet!

So, if my client's spouse, as allowed under California law, makes $500K a year, when my unemployed debtor files a chapter 7, 1 U.S.C. s 7 says I don't have to list the "spouse"'s income as long as the "spouse" is the same sex.  I hope I get those exact facts one day!

Mental Gymnastics for thought on this issue: When the Chapter 7 trustee asks at the 341(a), "are you married", do I object for uncertainty?  I guess the answer is that he is married, but just doesn't have a "spouse" under Federal Law!

Section 101(10A)(B) requires the debtor to include in CMI, payments from any source made on a regular basis for the household expenses of the debtor.  Maybe the catch is there.

Anyway, thanks Jon.  You definitely answered the first question I had.  My current petition will be filed, based on 1 U.S.C. s 7, as a "single individual." not "individual-married," if the client gets married before I file.

Jeff Smith

Editor's comment.  Is property acquired during the "marriage" community property?  I.e., can the trustee seize the non-filing spouse's interest in the property?  Is the non-filing spouse's future income protected by the community property discharge?  A similar problem was dealt with in :

Rabin v. Schoenmann (In re Rabin; In re Johnson) 359 B.R. 242 (9th Cir BAP, December, 2006)

Issue:  Must a gay couple, registered under the California Domestic Partnership Registry, share or split the homestead exemption?

Holding: Yes.