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2 roommates + 2 incomes = 1 happy debtor


Bosom Buddies

In re Bostwick, 2009 WL 1788046 (Bky.D.Minn. June 23, 2009)

Sounds like sanity could be returning to the Bankruptcy system, but you be the judge. As reported in this piece by Attorney Craig Andresen for the Bankruptcy Law Network, a court in Minnesota has ruled that unrelated roommates living in the same house or appartment constitute a “2-person household’ while at the same time not taking the roommate’s income into account when it came to the debtor’s Means Test. In other words, a debtor living with a roommate in Minnesota can make more money than his neighbor in Wisconsin or Illinois and still file Chapter 7 (or finish Chapter 13 in 3 years instead of 5). It’s actually an interesting and perfectly logical way to look at things – take a look and see if you don’t agree. The alternative can be downright ridiculous; just ask any consumer bankruptcy lawyer frustrated by the system (hint: that’s everyone …). [read the full article]

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