When you are drafting a bankruptcy petition for a couple who is separated and maintain their own separate households, there is a nearly complete duplication of all expenses, including things such as rent/mortgage, phone, water/sewer, trash, food, electric, gas, cable/satellite/internet, etc.
With this kind of duplication of expenses, how is this to be reported on the bankruptcy petition? There’s only one Schedule J, right?
Some may be tempted to add both of the spouses’ expenses together and enter the combined amount into Schedule J of the petition, but this wouldn’t provide an accurate picture of the debtors’ expenses.
Instead, check your bankruptcy software for an option to report the spouse’s expenses separately. In Best Case, you would go into Schedule J, and at the bottom of the first tab, an option will appear that reads: “Check here if a joint petition is filed and debtor’s spouse maintains a separate household or to itemize the separate expenses of a non-filing spouse”. If you check the box next to this option to enable it, a button will appear at the lower right that is labeled “Spouse’s Schedule”. Clicking this button will pop up a new window that provides you a place to provide all of the spouse’s expenses, so that you can easily account for the duplication in expenses that this spouse has by maintaining a separate household. When you’re done entering the spouse’s expenses, you just click the “Close to debtor’s schedule” button to return to your usual Schedule J window.
You may have noticed too, that this same option is also useful for “…itemizing the separate expenses of a non-filing spouse”…good information for you to know.
Ready to start earning income drafting bankruptcy petitions from home? See our online bankruptcy petition training courses at www.713training.com. You can also join our online community at www.navba.org.