Will Trustee question this and/or have problems with it?

[sillywalks]

My son's father owes me child support arrearage (for 18 years of non-payment). We went to arbitration and agreed he would pay me $200 every two weeks, plus $3000 each January until paid up. He lost his job last July due to cut-backs and has only found part-time, minimum wage work since then. He has not paid anything since August 1st of this year. He was convicted of a federal felony a few years back as well, so I'm sure that impacts his ability to get a job (he embezzled money from the company he worked for -- he has another year or two of probation for that). He has paid on time for the last 3 years (when we signed the agreement). I have not pursued his non-payment because, frankly, it is understandable and what is the point in putting him in jail?

Is the trustee going to have a problem with this? Also, I have no way of knowing when (or if) he is going to get a job that allows him to begin paying me again. I cannot count on that money, and I am not planning on listing it as income in my bankruptcy (I will put it in the explanation section of why my income might increase in the future 12 months). Is this going to impact my filing?

Along that line, at my job they cut 10 days from our school year, meaning 10 days less of pay (and no overall increase). I do not and will not know any time soon if they will continue the 10 day cuts, if we will get our step increases next year, or if there will be any kind of overall increase (or further cuts). How do I account for this type of thing?

Third, I have a renter in my basement who currently pays $650 (which includes utilities, TV, and Internet -- it's in the contract). She works for the county and may be taking a pay cut and need me to reduce the rent (I told her I would be wiling to do it to keep her, as she's a great renter). Will the trustee have a problem with that, if it happens in the next month (when I plan to file early February)?

Fourth, my son had decided to move out (not a convenient time for me!). So, I will be a household of one, which changes a lot of numbers. However, I will still be providing support for him (he is a full-time college student and works a part-time minimum wage job). I pay for his car insurance, health insurance, help with books, gas, food, clothes, etc. I could legitimately list $400 a month (on top of the car/health insurance) -- but want to put a number that the trustee might not look twice at. Any suggestions?

I really appreciate any help. I'm a bit more tense with my son leaving, because I do not want to have to file Chapter 13!

Thanks again!

[sillywalks]

Oh, one more question! I changed my deductions so that I would basically pay the minimum allowable in taxes because I needed more income to survive. The change went into effect in October (it added a little more than $250 to my paycheck). I will need to adjust the deductions next year to insure I do not owe taxes for 2011 -- how do I account for this in my filing?

[daylate]

To answer your last question, as I understand it your schedules I & j reflect what your income and expenses will be prospectively so figure out what your taxes will be for 2011 and divide by 12-that should be the taxes amount you show on whichever schedule calls for it. Also if you file before you file in 2011, I would assume you can also include any additional taxes (if any) you owe for 2010. This, however, is just my interpretation of what I read so its best to get an attorney's opinion. To me your situation is complicated enough that an attorney will be necessary.

[tcreegan]

Hi sillywalks,

The child support: only actual amount rec'd on the last 6 months for the means-test. On schedule I, you put what is 'reasonably anticipated' and right now you have good reason to reasonably expect none. Short explanation on line 17

Work days cut: pretty much same answer, actual on the 6 month lookback, on schedule I, you put 'projected income' Unless the economy in Georgia is rebounding more than it is here, I would project no increases, keep your ear to the ground about cutbacks.

Renter: Rent minus expenses = income for 6 month lookback. Sched. I use 'projected' rent, after talking w/ your basement dweller, get a reasonable number.

Son at College: .....hmmmmm...under 24? The UST position is to use IRS Pub 501 to define dependents, which are included in your household size.

http://www.irs.gov/pub/irs-pdf/p501.pdf

Full time college student must be under 24 at the end of the year
Lived w/ you for half of the year, military service, education, vacation are temporary absences, don't count
Did not pay for more than half of his living expenses
Is not on someone else's tax return as a dependent

This is what you need for household size, but expenses are another story...apparently courts have been rather harsh on college expenses, don't consider them 'necessary'

see: http://longislandbankruptcyblog.com/...en-means-test/

One of the main arguements for excluding college expense is that it is not specified anywhere in the BK code. So if something is specified.....should be OK right?
I am no lawyer, don't even play one on TV, but I would think the living expenses that have specific categories on the means-test or schedule I would be OK
Food, clothing, medical, insurance, transportation...??

Hope this helps sillywalks, annoys me no end that the BK system is rigged against having kids in college...don't they realize that is who we are counting on to fund our retirement?!

Tom in Colo

[sillywalks]

daylate -- Thanks. I won't owe for 2010, because I did not change my deductions until October (last year I got about $3300 back). I will work on figuring my taxes for next year, and put that on the schedule, though.

[sillywalks]

<

Hi sillywalks,

The child support: only actual amount rec'd on the last 6 months for the means-test. On schedule I, you put what is 'reasonably anticipated' and right now you have good reason to reasonably expect none. Short explanation on line 17>

I was worried the trustee might say "why haven't you pursued this legally?" regarding his non-payment. We've had our problems, but he cannot help having lost his job in this economy.

<<Work days cut: pretty much same answer, actual on the 6 month lookback, on schedule I, you put 'projected income' Unless the economy in Georgia is rebounding more than it is here, I would project no increases, keep your ear to the ground about cutbacks.>>

Definitely no signs of improvement any time soon!

<Renter: Rent minus expenses = income for 6 month lookback. Sched. I use 'projected' rent, after talking w/ your basement dweller, get a reasonable number.>

I can do that!

<Son at College: .....hmmmmm...under 24? The UST position is to use IRS Pub 501 to define dependents, which are included in your household size.

http://www.irs.gov/pub/irs-pdf/p501.pdf>

Great webpage to look at! Still kind of confusing...he does get the Pell Grant, which basically covers tuition and some books, but not gas, food, clothes, etc. I'm hoping if I put $250 (not including car/health ins.) I can get that through...


<see: http://longislandbankruptcyblog.com/...en-means-test/>

A lot of interesting info on this site, thanks for the link!


<I am no lawyer, don't even play one on TV, but I would think the living expenses that have specific categories on the means-test or schedule I would be OK
Food, clothing, medical, insurance, transportation...?? >

That would seem logical -- which probably means we are wrong! LOL

<Hope this helps sillywalks, annoys me no end that the BK system is rigged against having kids in college...don't they realize that is who we are counting on to fund our retirement?!

Tom in Colo

>

Seriously! Plus, it's unrealistic especially in light of the difficult economy. Financial support of a young adult is more and more commonplace, and is not a luxury!

As always, your input was very helpful, Tom. Thanks so much!

[tcreegan]

...on the back child-support, explain you can't get blood out of a turnip....