Outside Contributions: What They Are and How To List Them

Though it may seem strange, if someone else pays for any of your expenses, the bankruptcy forms count that help as income. This is called an outside contribution. It counts as a source of income on the bankruptcy form even if no money ever passes through your hands.

Lots of Upsolvers receive outside contributions. Here are some of the most common forms we see:

• Help with housing: You live with family or friends and they cover part or all of your share of rent, utilities, or food.
• Help with a specific bill: Someone pays one of your bills directly, like your phone plan or car insurance.
• Help with other expenses/cash gifts or contributions: A relative, friend, or partner regularly gives you money.
• Help with household bills: A partner or roommate covers some or all of the shared bills.
• Help from a charity: A food pantry or shelter provides food or housing.

When you go through the Upsolve questionnaire, it will ask about your recent, past, and expected income. If you're receiving help from others, it must generally be listed as an outside contribution. You'll need to estimate the value of that support for each of the months you've received it. For example, if a filer lives for free in a room in their parents home, they might list $500 as a monthly outside contribution for housing based on the room rental rate in their area. 

The bottom line: Even if you haven’t exchanged any money, if someone covered an expense for you it’s an outside contribution and considered income on your bankruptcy forms.

Why Do Outside Contributions Count as Income?

One of the goals of the bankruptcy forms is to give the trustee and court a complete picture of your finances, including your budget. Your budget includes your income (all the money and support coming in) and your expenses (all the money going out for bills and other needs).

Even if you had little or no income, your basic expenses were still covered somehow. Often a family member, friend, or someone else paid them for you, and may still be paying them. When someone else covers your expenses, that’s an outside contribution.

The court needs to know how you paid your expenses during the last two calendar years and how you’ll pay them after filing. If your forms show low or no income and no outside contributions, the trustee will likely ask how you’ve been getting by.

Common Outside Contribution Situations and How To List Them

You live with family or friends and don't pay your full share
The value of what they cover for you counts as a contribution. That usually means your share of rent or mortgage, utilities, and food. One common way to estimate your share is to divide the total household cost by the number of people living there. Don't forget to also list this in your expenses section. Like with income, all expenses must generally be listed in your account, even if someone else is currently or has been covering them.

Someone pays one of your bills directly
The monthly amount of that bill is the contribution, even though you never see the money. 
 

Someone gives you cash, but the amount changes
If you know the amount you received each month, you can list that for each month. If you aren't sure, you can add up the totaled received over the last six months and divide by six. Include months when you got nothing, because they still count toward the average. Then list the average monthly amount in the income section on your Upsolve account
 

You split bills with a roommate
List the full household bills (rent, utilities, internet) in the expenses section. Then list what your roommate pays toward them as a contribution in the income section.