This, of course, depends on the Debtor’s living situation at the time of filing and also looking forward.  Generally speaking, if the Debtor has a larger household, it could mean the difference between passing the Means Test to qualify for a Chapter 7 bankruptcy or, instead, having to do a Chapter 13 bankruptcy.  The more dependents or household members you have, the greater the state of median income for a family of that size.  However, a larger household can also work against a Debtor by potentially adding more income and skewing the Means Test.  It’s important to seek the help of an experienced bankruptcy attorney to help you determine your household size, but keep the following in mind.

A household does not simply mean “husband, wife, kids.”  A household consists of all the people who occupy some type of housing unit, whether it’s a house, apartment, etc.  The term household carries broad definitions, but the courts are going to likely focus on if the additional household member is contributing income to the home and paying out expenses.

You should compile some type of income and expenses report within your household to determine what income is going into the home and towards what expenses.  It doesn’t need to be anything fancy, just some type of report on paper so you are able to visually see how they bills are getting paid and by which household member’s income.  This is especially important for those with unique household units.

There is a difference between household members and dependents.  For example, your 13-year-old daughter would likely be considered a dependent and household member.  Where it often gets tricky are for those who may have an 18 year old child or older still living at home.  The courts will likely argue, the child is 18 years old and should no longer be considered a dependent, especially if they are working and paying their own bills.  So let’s say for example this 18-year-old child was working and paying their own bills, but still living as part of the household.  It is possible he or she could be included as part of the household for the Means Test but we would have to list his or her income and expenses.  You may also have a situation where an older relative may live at your home and contribute no income at all.

There are situations where an individual may be included as part of your “economic unit” but not as household member for purposes of the Means Test.  For example, you may have a roommate who contributes towards expenses only and therefore could argue that person is a part of your economic unit only.  The situation changes however if you are cohabiting with the person as a family unit, so discuss your living situation with your attorney.  There are numerous living situations that could apply to your situation but you should let a qualified legal counsel help you decipher your household size and how it will be viewed on the Means Test.