Child Care as an expense...

[BK Overwhelmed]

Hello!

I am so grateful to have found this forum and only wish I would have found it 5 months ago. We are filing FINALLY on Friday. We are over median by 15K and while I am so nervouse to travel the over the median road...my attorney wants to go for it..as we do qualify after expenses. The main question is ...will trustee consider our expenses "reasonable"...i.e. rent pymt will be $2500..(our curent house pymt ranges from $2200-$2500..but we are surrendering it) IRS standars is $1200...ya right that is not possible in Gilbert AZ) also 2 car pymts of $700 and $600 while IRS standards are $500...

My question to you all is...what do you think or what has been passed as "reasonable" child care? I am a stay home mom, but all my children are adopted and as of a month ago we got a suprise child #4 (2 month old boy)...which is costing us $10K (not sure if we can count that for expenses anywhere) and I have 4 children under 4..none in full time school.

So I have"child care" now in the form of live in nanny...my 20 year old sister and are paying her $500-$800 a month. Wonder if this will be questioned or "not reasonable" because I am stay home mom??? But I cant get my 4 year olds to preschool or run into grocery store withouth waking my other 2 babies (2 months and 14 months) up from naps and such by myself...

thoughts??

[arkienurse]

What does your lawyer say about the adoption expenses? And the nanny? If he thinks it will fly then go for it.

And congrats on the new baby. I work with a woman who tried for years to get pregnant. She walked into work 9 weeks ago on a Friday, childless, and left the hospital that evening with a baby boy. They went to court today to get the adoption started.

[jerzey]

I Could say a Live in nanny is reasonable, We included child expenses and the tustee didn't even mention it

Get in depth with your lawyer on this issues to be sure

[Cali]

I don't see the nanny thing passing, because you are a SAHM.

[Help!]

Not to be a downer here, but based on my own experience this will be questioned if the US Trustee gets involved. That's not to say it won't be an allowable expense, but they will want to know how long you've been paying for this kind of help and will want to know how you've been paying her. Have you written checks to her? Has she reported (or does she plan to report) this as income on her taxes? I would be careful here.

Mine is a worst-case scenario in which *everything* on our petition was questioned by the UST. Maybe because you aren't as far above the median your petition won't catch the attention of the UST. I hope this is the case for you and wish you good luck!

[CindyLou]

You will only get to use the 1200.00 for housing. You can only use more if its a mortgage....if its rent you just get the allowed.

As far as the nanny, I do think that will be questioned. You are a stay at home mom and the fact that your sister is the nanny will be looked at as suspicious. If you worked full time I think it might fly, even with the sister, but being at home and having a nanny might be a bit much to get passed the trustee.

Please don't misunderstand, I am not judging you. I am just giving you my opinion on what the trustee might think.... I remember a member on this board who's kids were in daycare and the wife didn't work and it was questioned. You know, you can't even take the childcare expense credit on income taxes if both parents don't work....so this might be a basis for where they start with this.

As far as the cars. They don't seem to be so much out of the range of allowed...but again I think they will just allow you the maximum of the allowed on your expenses.

I do have a question; you are surrendering your house with a mortgage of 2500 and then renting for the same amount of money. You would be better off staying in the house, not reaffirming, the giving it up later. Then you would get the benefit of the whole amount of the mortgage payment on your expenses instead of the 1200.

Just a thought....hope it all goes well.

Cindy

[biotechsolution]

I'm pretty sure you two car payments won't be allowed at that amount. $1300 will be considered way high. Ditto on the rent, they are pretty strict when it comes to rent, much more relaxed on the house payment. Keep it till after the 341.

[BK Overwhelmed]

Good thoughts...

Thank you ...I don't know why my paralegal didnt suggest "keeping" house till later. He actually told me "you need to have a lease a greement in place ranging from $2000-$2500 or you wont qualify for ch 7"...otherwise we might have found something cheaper. He is not so worried about the rent payment...maybe they are more laid back in Maricopa county, AZ on rent???

[dragonnfly]

I am nowhere near Arizona, we live way out in the country, you cant see another house from ours. We have a 12 year old thats very forgetful. He is home alone before the bus comes 4 mornings a week. I was coming home to the house unlocked, all the lights on.....every single one (he was scared is all I can figure, but he wont admit it). Hes much happier now that I have a neighbor come and stay with him from 6:50am til the bus comes at 8:10. I give her $40 a week. So $160 a month and they were complaining about it because hes 12. I explained to him that my electric bill alone would be more then the $40 a week if I left him there alone. Then I defended it by saying I could take him to the before school care which would be like $60 a week and they dropped it.

Anyways I think the problem your going to have with your sister is unless she has another job or something she should be contributing to the household somehow. They might want to know what she pays you for rent etc. With you being a stay at home mom the amout of time you need a sitter in a week shouldn't merit a live in nanny. Same as if I called my daughter a live in nanny also and said I paid her $160 a month, I cant see them going for it. Dragonnfly

[TomBrady]

all I have to say is good luck to you, if you try and file that stuff its gonna raise red flags all over the place, if it is true file it but if its not (Im not saying your lying Im just saying if) I would drop that idea and come up with a new one...

[momof5]

I cant get my 4 year olds to preschool or run into grocery store withouth waking my other 2 babies (2 months and 14 months) up from naps and such by myself...

Not to sound rude but I wonder why you say you cannot do this by yourself? Women do it every day. I think if you just figured out a system to it then you would have no problem doing everything you need to do with all your children.
Its tough... trust me I know. Been there and definately 'done that'. You could save yourself so much money!

I would think that most trustees would probably look at it that way as well.

[Cali]

I was thinking the same thing. I know single moms that do it everyday and they work.

Not to sound rude but I wonder why you say you cannot do this by yourself? Women do it every day. I think if you just figured out a system to it then you would have no problem doing everything you need to do with all your children.
Its tough... trust me I know. Been there and definately 'done that'. You could save yourself so much money!

I would think that most trustees would probably look at it that way as well.