Preschool as an expense?

[vicmost]

I've been planning on filing Chapter 13 for several months. I thought I had all my ducks in a row but life through me a curve ball and I became a single parent for 4 months. It was necessary for me to enroll my daughter into Preschool / daycare while I worked.
My wife and I reconciled , however we both chose to keep our daughter in preschool as it is beneficial to her social development. My wife does not currently work so we cut back to 4 days a week and she picks up our daughter up in the afternoon. Our current costs is about $500 per month.
I live in Southern California and this is actually one of the more affordable preschools in our area.
Will a Trustee allow this as an expense?

[justplaintired]

Since you wife is not employed and you are not in the need of childcare, which would be allowed if she had a job, then that seems like a very expensive preschool by my standards. Private schools have been discussed on here in other threads, you might do a search and see what you come up with. You may need to look into a less expensive preschool. How old is this child? Don't they offer preschools at local churches that cost less? I don't know but that just seems like something a trustee would question as a living expense. It's necessary living expenses, not luxury living expenses, which I realize preschool is a necessity, but the price maybe considered too high. If you have an attorney make sure you find out what they say. Maybe where you live that's an acceptable figure, here it wouldn't fly.

[sassiebaz]

I have no idea as to the answer to your question. But, as to respond to the cost: It's pretty affordable considering that a full day at daycare, 5 days a week here in AZ is over $600/mo. However, you could take it down to 2-3 days a week and it would cost even less. I paid $250 a month for 3 half days, when my little one was 3 yrs old. For some kids it is vary important to socialize them. Other's do just fine without. I have had each scenario raising my kids. Good luck!

[walkthaplank]

That pre-school is darn near free by local standards. Having been through the trustee grill at the court where you are filing, I'm going to say that they are probably going to grill you on that expense because your wife isn't working. Now if she is in pre-school because your wife is LOOKING for work, well they might let it go especially because it is such a reasonable amount.

[optimistic1]

It's a wage earner's plan, and by that, your wife would need to be working in order to claim that as an expense, unless she has some type of condition that would prevent her from caring for the child. If I was the trustee, that is what I would think of when seeing the $500/month expense, which by the way is about what I pay, which is a bargain.

Most legitimate expenses are allowed, but they need to be justified.

[vicmost]

That pres-chool is darn near free by local standards. Having been through the trustee grill at the court where you are filing, I'm going to say that they are probably going to grill you on that expense because your wife isn't working. Now if she is in pre-school because your wife is LOOKING for work, well they might let it go especially because it is such a reasonable amount.

Having read your posts about your experiences with our districts trustee and the fact that we have the same lawyer I think I should err on the conservative side. The worse case scenario would be that they tell me the expense is unnecessary and take it all. I have little confidence that our lawyer would know the answer.

[optimistic1]

Think about beefing up other expenses.

[vicmost]

Think about beefing up other expenses.

I lost all of my 401k to pay taxes and living expenses when I was unemployed, bad move on my part as they would have been protected by the bk. I have opened up a new life insurance policy about 3 months ago giving me a total of 600k protection for my family. Will this new policy be knocked down by the trustee as well? I am spending $173 a month on two policies. 600k on myself and 100k on my wife.

[flower04]

We were allowed $127.50 per child per month during our 13 budget for "tuition." I'mnot sure if this is the IRS standard or my state standard. We were also allowed a "childcare" expense. I would max out both and hope that you come out with enough. Our Childcare expense is about $200 a month. I did have to show records for this since it is in my home while I work at home and the trustee wanted to see documentation. You will probably be fine with a certified daycare. Good luck.

[optimistic1]

We were allowed $127.50 per child per month during our 13 budget for "tuition." I'mnot sure if this is the IRS standard or my state standard. We were also allowed a "childcare" expense. I would max out both and hope that you come out with enough. Our Childcare expense is about $200 a month. I did have to show records for this since it is in my home while I work at home and the trustee wanted to see documentation. You will probably be fine with a certified daycare. Good luck.

What state are you in? 127.50/month? thats crazy, you would be lucky to get three days out of a daycare for 127.50.

If you have receipts, then its too freakin bad for the trustee.

[flower04]

We are in Oregon. Talk to your attorney, you can make a case for it if you really need it. We would've probably upped our amount if we could, but the previous 6 months prior to filing, that was what we actually spent on childcare and that was the average, so that is what our budget gets. Keep receipts and records for your filing.

[DOA]

My daughter was in her last year of college when we filed, and we were told straight up by the judge "Anything beyond publication is a luxury, not a necessity". Good luck.

[optimistic1]

College and daycare are just a little different dont you think?

[vicmost]

College and daycare are just a little different dont you think?

That would depend on the college! ...Or the day care, depending on how you look at it...

I don't need day care , I was looking at the social and educational benefits of preschool. I don't see the Trustee approving this as necessary expense at this time.

It looks like I will have to run it by the attorney. Since I'm still a few months away from filing I'd like to get it handled now.

Thanks to all for your input.

[optimistic1]

ahh, I get confused easily from sleep deprivation.