Recently one of my clients advised that she shared her home with a same sex partner, and wondered what effect that would have on her bankruptcy filing. Since Michigan does not recognize their marriage, would she be filing as a single household or household of two? Since the means test does not account for the income of a same sex partner, such income does not have to be considered when determining if the debtor is below means and qualifies for a Chapter 7 bankruptcy. By the same token, if, as here, only one partner is employed and her income is above means for a single person, but below means for a household of two, she could qualify for a Chapter 7 filing under the holding in In Re Smith HG:08-00850. In that decision the court held: “I am satisfied that “household” … … means all persons, related or not, who reside in the same housing unit as does the debtor” The Court rejected the notion that the members of a household had to be related by blood or marriage. Consequently, it appears that where unmarried couples, same sex or not, reside in one household, the filing partner could qualify for a Chapter 7 filing even if his or her single household earnings exceeds the means amount, but were less than a two member household.
