Cases for Zip , California Northern District Bankruptcy Court

Ninth Circuit Cases

• In re Epperson

Bankr.D.Arizona - 409 B.R. 503 - 2009-07-23 - 7 ,

Debtor can include roommate in household but does not have to include all of his income. Follows "heads on beds" test.; Jewell

Other Circuits

• In re Gaboury

Bankr.D.R.I. - BK No. 11-10725 - 2011-11-17 - ,

debtor's household size included two adult children who lived with them, court after analyzing the various tests courts have used to answer this question, applies the "economic unit test" and finds that one of the two children cannot be included

• In re Bostwick

Bankr.D.Minnesota - 406 B.R. 867 - 2009-07-23 - 13 , Below

Roommate, under the circumstances, makes a household of two. Court applies Census bureau "heads on beds" standard to determine who is living in the household.

• In re Justice

W.D.Ark. - 404 BR 506 - 2009-04-15 - 7/13 ,

Based on the facts of this case, the Court makes three findings. First, this Court finds that the debtor's adult daughter, Arrin, and her son are dependents of the debtor under § 707(b)(2)(A)(ii)(I), and that the debtor completed his Amended Means Test correctly by choosing applicable standards based on a family size of five. Second, the $125.00 educational expense is disallowed. And third, Arrin and her son received at least $18.61 in financial assistance that must be included in the debtor's current monthly income.

• In re Ellringer

Bankr.D.Minn. - 370 B.R. 905 - 2007-06-20 - 7 , N/A

The Bankruptcy Code does not define what constitutes a household. 11 U.S.C. § 101(39A)(A) defines the "median family income" as "the median family income both calculated and reported by the Bureau of the Census." This calculation uses the Census Bureau's definition of household. Thus, the Census Bureau provides the most appropriate definition of "household" for use in the means test because it ensures that a household in the means test 911*911 Will have the same number of members as the calculation of median family income. The Census Bureau defines "household" as "all of the people, related and unrelated, who occupy a housing unit." U.S. CENSUS BUREAU, CURRENT POPULATION SURVEY (2004), http://www.census.gov/population/ www/cps/cpsdef.html. A housing unit is a house, apartment, group of rooms or single room that is intended for occupancy as a separate living quarters. Id. Households may be either family or nonfamily. Id. Family households include the householder and all the other people in the living quarters who are related to the householder by birth, marriage, or adoption. Id. A nonfamily household consists of a householder living alone, or a householder who shares the home exclusively with people to whom he or she is not related. Id. If Congress had intended to limit household size to only household members related by blood, marriage or adoption, it could have done so by saying "in the case of a debtor in a family of 2. . . ." However, in recognizing that there may be reasons why two unrelated, non-dependent individuals should be treated as a household for purposes of the means test, Congress elected to use the word "household" instead of the word "family."

The U.S. Trustee advocates using the Internal Revenue Manuel's definition of "household." The IRM does not define household, but indicates that the number of persons allowed under the national standard expenses should generally be the same as the number of dependents on the taxpayer's latest income tax return. INTERNAL REVENUE SERVICE, INTERNAL REVENUE MANUAL, § 515.1.7 (2004), available at http://www.irs.gov/irm/part5/ch15s01. html # doe182366. I decline to use the IRM definition because it applies to the allowed expenses after the debtor is already found to have above median income. The IRM definition is not used to decide the threshold question of whether a debtor has above median income for her household size.

• In re Anderson

Bankr.D.Kan. - 367 B.R. 727 - 2007-04-13 - 13 , Below

household size changed after petition date when daughter moved in, court allowed increase in household size for determining commitment period

• In re Campbell

Bankr. S.D. Ga - No. 06-60280 - 2007-03-29 - 7 ,

concluding that a debtor who lived with his mother must include any amounts she paid on a regular basis for the debtor's household expenses in calculating his CMI, as the mother qualified as "any entity" under Section 101(10A)(B)).

• In re Jewell

Bankr.S.D.Ohio - 365 B.R. 796 - 2007-03-16 - 7 , Below

Debtors’ daughter and her dependents were part of debtors’ household. Each were dependent upon the debtors for their support, were unable to contribute any of their income to the debtors after paying their expenses, showed no evidence that their living arrangement was intended to be temporary, and showed no evidence that they failed to function as an economic unit with the debtors
Court rejected Census Bureau’s definition, and IRS’s position regarding what constitutes a household.

• In re Gaboury

Bankr.D.R.I. - BK No. 11-10725 - 2011-11-17 - ,

debtor's household size included two adult children who lived with them, court after analyzing the various tests courts have used to answer this question, applies the "economic unit test" and finds that one of the two children cannot be included

• In re Bostwick

Bankr.D.Minnesota - 406 B.R. 867 - 2009-07-23 - 13 , Below

Roommate, under the circumstances, makes a household of two. Court applies Census bureau "heads on beds" standard to determine who is living in the household.

• In re Epperson

Bankr.D.Arizona - 409 B.R. 503 - 2009-07-23 - 7 ,

Debtor can include roommate in household but does not have to include all of his income. Follows "heads on beds" test.; Jewell

• In re Justice

W.D.Ark. - 404 BR 506 - 2009-04-15 - 7/13 ,

Based on the facts of this case, the Court makes three findings. First, this Court finds that the debtor's adult daughter, Arrin, and her son are dependents of the debtor under § 707(b)(2)(A)(ii)(I), and that the debtor completed his Amended Means Test correctly by choosing applicable standards based on a family size of five. Second, the $125.00 educational expense is disallowed. And third, Arrin and her son received at least $18.61 in financial assistance that must be included in the debtor's current monthly income.

• In re Ellringer

Bankr.D.Minn. - 370 B.R. 905 - 2007-06-20 - 7 , N/A

The Bankruptcy Code does not define what constitutes a household. 11 U.S.C. § 101(39A)(A) defines the "median family income" as "the median family income both calculated and reported by the Bureau of the Census." This calculation uses the Census Bureau's definition of household. Thus, the Census Bureau provides the most appropriate definition of "household" for use in the means test because it ensures that a household in the means test 911*911 Will have the same number of members as the calculation of median family income. The Census Bureau defines "household" as "all of the people, related and unrelated, who occupy a housing unit." U.S. CENSUS BUREAU, CURRENT POPULATION SURVEY (2004), http://www.census.gov/population/ www/cps/cpsdef.html. A housing unit is a house, apartment, group of rooms or single room that is intended for occupancy as a separate living quarters. Id. Households may be either family or nonfamily. Id. Family households include the householder and all the other people in the living quarters who are related to the householder by birth, marriage, or adoption. Id. A nonfamily household consists of a householder living alone, or a householder who shares the home exclusively with people to whom he or she is not related. Id. If Congress had intended to limit household size to only household members related by blood, marriage or adoption, it could have done so by saying "in the case of a debtor in a family of 2. . . ." However, in recognizing that there may be reasons why two unrelated, non-dependent individuals should be treated as a household for purposes of the means test, Congress elected to use the word "household" instead of the word "family."

The U.S. Trustee advocates using the Internal Revenue Manuel's definition of "household." The IRM does not define household, but indicates that the number of persons allowed under the national standard expenses should generally be the same as the number of dependents on the taxpayer's latest income tax return. INTERNAL REVENUE SERVICE, INTERNAL REVENUE MANUAL, § 515.1.7 (2004), available at http://www.irs.gov/irm/part5/ch15s01. html # doe182366. I decline to use the IRM definition because it applies to the allowed expenses after the debtor is already found to have above median income. The IRM definition is not used to decide the threshold question of whether a debtor has above median income for her household size.

• In re Anderson

Bankr.D.Kan. - 367 B.R. 727 - 2007-04-13 - 13 , Below

household size changed after petition date when daughter moved in, court allowed increase in household size for determining commitment period

• In re Campbell

Bankr. S.D. Ga - No. 06-60280 - 2007-03-29 - 7 ,

concluding that a debtor who lived with his mother must include any amounts she paid on a regular basis for the debtor's household expenses in calculating his CMI, as the mother qualified as "any entity" under Section 101(10A)(B)).

• In re Jewell

Bankr.S.D.Ohio - 365 B.R. 796 - 2007-03-16 - 7 , Below

Debtors’ daughter and her dependents were part of debtors’ household. Each were dependent upon the debtors for their support, were unable to contribute any of their income to the debtors after paying their expenses, showed no evidence that their living arrangement was intended to be temporary, and showed no evidence that they failed to function as an economic unit with the debtors
Court rejected Census Bureau’s definition, and IRS’s position regarding what constitutes a household.

All Cases A to Z

• In re Anderson, 367 B.R. 727 , (Bankr.D.Kan. ) 2007-04-13, #14186290537695236908
• In re Bostwick, 406 B.R. 867 , (Bankr.D.Minnesota ) 2009-07-23, #5409473419602711786
• In re Campbell, No. 06-60280 , (Bankr. S.D. Ga ) 2007-03-29, #5418864583280234931
• In re Ellringer, 370 B.R. 905 , (Bankr.D.Minn. ) 2007-06-20, #334875251260235756
• In re Epperson, 409 B.R. 503 , (Bankr.D.Arizona ) 2009-07-23, #6304383859003194074
• In re Gaboury, BK No. 11-10725 , (Bankr.D.R.I. ) 2011-11-17, #3695157355501029229
• In re Jewell, 365 B.R. 796 , (Bankr.S.D.Ohio ) 2007-03-16, #18187979739399500927
• In re Justice, 404 BR 506 , (W.D.Ark. ) 2009-04-15, #13298160095506409838