Question about 341 and disabled adult son's SSI

[Tchr2012]

I have officially filed and have my case number. My 341 is May 4. I am so ready to get that done and over with, and then I can focus on rebuilding credit and savings. I am a little concerned about how to answer any questions regarding my adult son. He is disabled and receives SSI. I claim him on my taxes, filing as head of household. He is unemployed, but he also has a special needs trust that lists me as his trustee. It is only used to supplement his medical care or extraordinary expenses (travel, large purchases he may make, etc.), and I do not receive any benefit from it. His SSI is used to cover his daily living expenses--any needs he has above and beyond what I provide for him in terms of shelter, food, and transportation. Even with his SSI included, I still pass the means test, but I am concerned that the trustees may look at his income unfavorably for me. Should I be concerned?

[justbroke]

The easy answer is that anything that is derived from a benefit from the Social Security Administration is not income for purposes of Means Testing. So that right there answers the question of whether it is income.

Additionally, that is income for him and not you, so it's not your income anyhow. That further insulates this SSI from the bankruptcy estate.

Did you file with an attorney? I don't know of any specialized questions the Trustee may ask, but my Trustees have all asked about my stepchildren and whether they worked!

[Tchr2012]

I did file with an attorney. He just sent me my case number and 341 date today. He doesn't foresee any problems, but I'm just trying to anticipate any potential issues. I'm ready to move on, so I guess I'm nervous that something will happen to convert my petition from a 7 to a 13. However, I'm a teacher, and I don't foresee that happening. I teach English, not math, but I'm pretty sure that 0-0 is still 0. There's little surplus funds each month to share, so the likelihood of that conversion occurring is slim to none.

[justbroke]

It's okay to be nervous. We all were, even at the 341 meeting. But once that 341 Meeting was completed, nearly all of us felt a whole lot better. Even 2-3 days after filing, the phones stop ringing. The silence is welcomed. Almost eerily so.

If your attorney feels comfortable that you fit within a Chapter 7, I won't personally question them. From some bankruptcy court statistics, conversion only happen in 10% of Chapter 7 cases. Those converted cases were usually borderline Chapter 13s (where the debtor was trying to squeeze into a Chapter 7). I suspect that 90% of that 10% (I hope you're a math teacher!) are over-the-median income debtors.

Again, welcome to the forum. Feel free to ask any questions. Lots of members here with lots of experience.

[despritfreya]

From what OP describes, I see no problem. SSI is not OP's. OP is not a named beneficiary of the trust. Being a trustee of a trust is a non-issue. The Bk Trustee may have a few questions but that should be the end of it.

Des.

[Tchr2012]

LOL...I'm definitely not a math teacher! I always tell my administrators that if they want me to quit because they don't want to fire me, just tell me I'm teaching math. I will get the hint and leave graciously.

Thank you all for the reassurance. I am sitting here making a plan for my future once this is all said and done. It feels like a new beginning, and I'm excited about it.