Including tuition help into the plan

[Ann]

Is it possible to include helping your child with this tuition into the plan if you file a chapter 13? My son is in his 3rd year in college and we help him out with the cost of living there. Is this something that is allowable under the plan? What about future tuition for a second child if that child will start college while you are under the plan?

[flower04]

In my state there is a budget for about $125 allowable expenses per dependent child in the household per month. You can't ask for me. You have to prove what you are spending it on too. Good luck

[lrprn]

Ann, whether you can include helping your son as an expense when filing will depend on your trustee's and local court's customs in this situation. Regretfully the answer will most often be no. Many trustees see this kind of cost as voluntary, not a necessity, and will challenge it. This will probably be the case for any future children as well while your 13 plan is active.

Ask your lawyer what to expect. He/she should know whether your trustee allows this kind of expense. Just be prepared to find out the answer is likely no.

[zeezee]

lrpn,

I agree. I have a grown son (not living with me but making min wage) also where I am paying his car note (my name is on it) and insurance (he's 21). My lawyer would not let me include it as an expense. He made me surrender my 1/2 interest in the car and did not include his expense for insurance in my plan. He said the trustee would certainly not allow it. The good thing is, I will have enough left over each month to continue to make the payments until it is paid off in 2 years and my son will get title! Keep your head up, there's a way to do everything.

[Ann]

Thanks for your input. I was afraid that may be the case. I'm in the very early stages of figuring out what I should do here. One thing is for sure, with all of the debt I have now I cannot keep throwing out good money paying on loans and credit cards when there is no end in sight! I appreciate your advice!

[unclerico]

Our attorney allowed us to claim our daughters monthly private school tuition into our monthly expenses. He told me that they had done it successfully many times and had only a hand full of objections. Your mileage on this will vary of course.

[lrprn]

Our attorney allowed us to claim our daughters monthly private school tuition into our monthly expenses. He told me that they had done it successfully many times and had only a hand full of objections. Your mileage on this will vary of course.

The difference for you is that I assume your daughter was still a minor and living at home as a member of the family full-time when you filed. A college-aged child over 18 is seen very differently by the courts, especially if that child is living away at college the majority of the year.

I'm glad this expense was allowed for you, and thanks for sharing what happened in your case. As you so wisely said, everyone's mileage when paying expenses for an over-18 child will vary depending on if/how much the child is still living in the filer's home, district case law, and the local court's and trustee's customs.

[unclerico]

If the OP is still claiming the dependent on his/her taxes and/or providing medical insurance does that help the situation?

[lrprn]

If the OP is still claiming the dependent on his/her taxes and/or providing medical insurance does that help the situation?

Not really. Since an over-18 child is considered legally an adult, that shifts the court's perceptions. Many trustees consider a college education as a luxury, not a necessity (and remember, it's the trustee's job to get as much money as possible back for the creditors). The thought is that the over-18 child can go to work instead and pay for their own expenses.

Whether the child is listed as a dependent for tax purposes is *not* what determines if the child can be included when calculating family size for the Means Test or for including their expenses when you file bankruptcy either.

Thus including expenses for an over-18 child when filing bankruptcy is not consistent across the country. It's a judgment call by the local and US trustees and/or the local bk court judge whether the over-18 child is able to pay their own expenses or not and how much time the over-18 child is living in the filer's home.

[cwillie]

We were allowed to claim $300 as "help with daughter's college expenses" and the trusteee allowed it without a problem. She's still in college and is 21.

[lrprn]

We were allowed to claim $300 as "help with daughter's college expenses" and the trusteee allowed it without a problem. She's still in college and is 21.

It's wonderful to hear that your Ch 13 trustee is one of the more reasonable ones, cwillie! Thanks for sharing your experience. Hopefully the same thing will happen for the OP as well. Sadly it isn't the norm across the country though