Fourth Circuit Adopts Economic Unit Approach To Household Size
Family law matters can complicate a Chapter 13 bankruptcy proceeding when determining the debtor’s household size. So how should a debtor determine her household size when she shares custody of her children? In the Fourth Circuit Court of Appeals, she should use a fractional, “economic unit” approach. The debtor and creditor shared joint custody of their two minor sons. Neither paid child support, and they shared their children’s expenses equally. The children resided with the debtor for 204 days each year....