Child Support Payments from State

[tivo.junkie]

My wife and I are exploring our options and are preparing to file Chapter 13. We are working with a highly qualified attorney and have developed a high confidence level in him.

We've run into a problem that he hasn't encountered before. It's become a deal-breaker and will prevent us from filing Chapter 13. Despite his experience, our attorney has not dealt with this problem before.

We live in Massachusetts. Ten years ago we adopted our son through the Department of Social Services, now the Department of Children and Families. He was abused, traumatized and neglected before he was placed with us. He has special needs is considered disabled.

Here's the problem: we receive bi-monthly checks from the state to help cover the expenses associated with supporting our son. These funds are not guaranteed and are subjected to annual review. The funds are deposited directly into our checking account each month.

Should these funds be included as income? Is there a way to exclude them? Has anyone had experience with this?

Thanks in advance for your help and support.

[Flamingo]

First, it is your attorney's responsibility to research this for you if you have retained him to represent you. I am surprised he has not attempted to do so as you state he is highly qualified. In your situation, your son is adopted and you receive state funds for his special needs and expenses. Review your state's program (call the agency) on this funding as to how they are distributed, qualifications needed, etc. Do you list these funds on your taxes? Do you have to report as to how these funds are spent (i.e., provide information/receipts to the Program)? Are these funds given to any family with a special needs child or is it income based? There are several issues and questions here that you need to look into but at first glance to me it is a form of disability-based funding for the benefit of the child and not to either of you so I would believe it would be exempt but that is just my opinion.

It would just take a little research by your attorney in your State as to this...I don't get it that he cannot provide you with an answer.

[tivo.junkie]

Thanks for your comments. Yes, the attorney is looking into this. I thought that there might be others on this forum with similar experiences and was looking for their advise and input.

The funds are not taxable and we do not have to report how they are used. They are provided to help us provide a better life for him, so they are for his benefit.

[Flamingo]

Thanks for your comments. Yes, the attorney is looking into this. I thought that there might be others on this forum with similar experiences and was looking for their advise and input.

The funds are not taxable and we do not have to report how they are used. They are provided to help us provide a better life for him, so they are for his benefit.

I know someone who's own child was l lb. 13 oz. at birth, survived, but with what will be lifelong disabilities. They receive similar funding but are in a different state than you. Plus there are restrictions and details needed by them to continue the funding that have to be provided on a timely basis. Not sure if they differ from state to state so that is why I mentioned your attorney should have looked into this automatically for you. Hope all works out for you....

[woeisme]

In Ohio, Southern District. My stepson receives SS survivor's benefits because his Mom died when he was 4 years old. We didn't have to include it as part of our disposable income, as we have to sign paperwork with SS a couple times a year stating that all the $ is used solely for the support of our son. So not the same state or exact situation as yours, but in our case the support for our son wasn't counted in CH 13 payment amount.