Support of son in college

[KatieEllen24]

Can anyone tell me if giving $190 support per month to son in college will be a problem in a chapter 7?

Also, I gave him $1000 for a security deposit on the home he's renting for school. Any thoughts or advice?

[backtoschool]

If you claim your son as a dependent on your tax return, then you should be able to both claim him as a family member (ie increase the family size) on your schedules and also to claim the $190 support for him without being questioned.

[helpme2010]

If you claim your son as a dependent on your tax return, then you should be able to both claim him as a family member (ie increase the family size) on your schedules and also to claim the $190 support for him without being questioned.

The more you give to help your son in college, the better it is for you meeting your means test. You have legitimate expenses such as this and these expenses help you meet the chapter 7 threshold. The more realistic expenses you have to deal with the better it will be for you in meeting your chapter 7. The BK courses you take will walk you through your expenses and help you suggest ways to lower your expenses after filing chapter 7, so you will eventually have to look at ways to lower your expenses to survive after the 7.

[HHM]

It depends, generally, supporting a kid a college is going to be questioned and it will depend on your district as to how this will play out. The best strategy is to make it so that even if the trustee were to object to this expense, you would still pass means test.

[tcreegan]

Hi Katie,

Gotta side w/ HMH on this one, variable by court, and best to make sure your case will fly w/o the college expenses. Apparently there is no support for college expenses in BPACPA, just elementary and secondary, saw one case where college was considered a "luxury"

In re Hicks, 370 B.R. 919 (Bankr. E.D. Mo. 2007): Found that a debtor paying college expenses of an adult child is a luxury, not a necessity, and that the Code does not provide any support for allowance of such deduction.

...how the heck do the courts expect us to remain competition in the global economy when a college education is considered a luxury!!

Better sign off before I start ranting about student loans and really blow a gasket...

Tom in Colo

[olivies]

In re Hicks, 370 B.R. 919 (Bankr. E.D. Mo. 2007): Found that a debtor paying college expenses of an adult child is a luxury, not a necessity, and that the Code does not provide any support for allowance of such deduction.

Yes, but she's not paying college expenses. She's sending him support money for living. At least, that's what her statement sounded like. I would think this could fall under "Continued contributions to the care of household or family members".

I agree about the competitive economy 100% Tom.

[backtoschool]

I think that support money will come under care of household family members, and will not be questioned, as long as the OP's son is claimed as a dependent on her tax returns.

[tcreegan]

....just a cautionary tale on the college expenses. I agree, $190 lunch money for the kiddo will fly...and if the trustee has a teenager they might question why it is so low...

[KatieEllen24]

Lawyer said not to worry about the $190 payment or the $1000.

[tyson24]

Katie,

He most likely knows what will and will not fly in your district. Hope all goes well for you