Schedule J: Other Expense for Private School

[InDebtNeedHelp]

Schedule J: Other Expense for Private School

Our monthly income and expenses are just about equal (not including our monthly credit card debt payment).

The only thing that concerns me on our Schedule J is $360 per month for private school for my daughter. Your thoughts? THANKS!!!

[Rick9972]

Without touching that agrument for or against private school. I believe this really depends on the trustee you get. If I was your trustee, it would not be allowed.

This is my opinion.

[InDebtNeedHelp]

What do you mean by not allowed? What would be said/done?

Without touching that agrument for or against private school. I believe this really depends on the trustee you get. If I was your trustee, it would not be allowed.

This is my opinion.

[lrprn]

What do you mean by not allowed? What would be said/done?

Some trustees (but not all) consider private school a luxury, not a necessity.

If your trustee is one of those that consider private school a luxury, then your trustee will file an objection with the court to remove it and readjust your Means Test and Schedules results accordingly. However, your lawyer can then work with the trustee behind the scenes to see if an agreement about the tuition can be reached. If it can't and your lawyer believes fighting the objection has a decent chance of winning, then your local bk court judge will get involved to eventually decide in your or in your trustee's favor.

However, none of this will be necessary if your trustee is one that accepts private school tuition. If you are filing with a lawyer, ask him/her to find out what to expect here. And if you are filing without a lawyer (pro se), then if removing this expense gives you more than $100/month disposable income on the Means Test and Schedules, then if I were you, I would rethink filing Ch 7 pro se.

[MSbklawyer]

This is one of those 'gray' areas. If decent public schools are available to you, the trustee could argue that your private school expenses are not reasonable or necessary -- that you could be paying this amount to your unsecured creditors.

I've seen it fall both ways. Depending on what else is available to you, you may be able to persuade the judge that private school expenses are necessary.

If the trustee does object, have your kid take the stand and testify about the necessity of private school. He/she should testify truthfully, of course, but along the lines of "All my life-long friends are there, my boy/girl friend is there, I like my teachers, I feel like I'm getting a good education there . . ." &c. If the judge has any compassion at all, he'll approve the expenses.

But be aware, the trustee will have the upper hand. There is a lot of case authority out there that says private schools are not a reasonable expense.

[InDebtNeedHelp]

I am filing pro se. Thank you for the input.

Some trustees (but not all) consider private school a luxury, not a necessity.

If your trustee is one of those that consider private school a luxury, then your trustee will file an objection with the court to remove it. However, you and your lawyer can then work with the trustee behind the scenes to see if an agreement about the tuition can be reached. If it can't and your lawyer believes fighting the objection has a chance of winning, then your local bk court judge will get involved to decide in yours or your trustee's favor.

However, none of this will be necessary if your trustee is one that accepts private school tuition. Ask your lawyer to find out what to expect here.

[InDebtNeedHelp]

Thank you very much.

This is one of those 'gray' areas. If decent public schools are available to you, the trustee could argue that your private school expenses are not reasonable or necessary -- that you could be paying this amount to your unsecured creditors.

I've seen it fall both ways. Depending on what else is available to you, you may be able to persuade the judge that private school expenses are necessary.

[MSbklawyer]

I am filing pro se. Thank you for the input.

The next piece of advice then would be NOT to file pro se, with these kinds of issues involved. Trust me. It will be cheaper to hire the lawyer.

[InDebtNeedHelp]

I am pretty sure this is my only issue. I rent my house. Reaffirming a new car. Everything else comes in under the exemptions. Credit card debt only. It seems like an open and shut case, other than the private school issue for $360 per month.

The next piece of advice then would be NOT to file pro se, with these kinds of issues involved. Trust me. It will be cheaper to hire the lawyer.

[MSbklawyer]

I am pretty sure this is my only issue. I rent my house. Reaffirming a new car. Everything else comes in under the exemptions. Credit card debt only. It seems like an open and shut case, other than the private school issue for $360 per month.

OK.

I wish you well.

But, like I've said before, I make a good living fixing botched pro se bankruptcies.

Some make it. Most don't.

[InDebtNeedHelp]

Thank you, sir. I will do everything I can to not botch it.

OK.

I wish you well.

But, like I've said before, I make a good living fixing botched pro se bankruptcies.

Some make it. Most don't.

[shabam]

Thank you, sir. I will do everything I can to not botch it.

What amount of unsecured debt (approximately) are you looking at discharging?

If it's anywhere near $100K and you are over the median, this expense might spell trouble. From the cases I have seen, if it does, it could very well mean dismissal.

[InDebtNeedHelp]

I am under the median by $10K. The unsecured debt is $20K. Thanks!!!

What amount of unsecured debt (approximately) are you looking at discharging?

If it's anywhere near $100K and you are over the median, this expense might spell trouble. From the cases I have seen, if it does, it could very well mean dismissal.

[shabam]

Yeah, you're a walk in the park.

I wouldn't lose 2 minutes sleep over that.

[InDebtNeedHelp]

Thank you, sir. I appreciate your time.

Yeah, you're a walk in the park.

I wouldn't lose 2 minutes sleep over that.