paying family for childcare... help!

[trader19]

hey guys...

i may be forced to file BK in about 11 months. need to wait that time to clean up possible preferential payments.

however, both my wife and i are going to try and go back to work... leaving either paying daycare for my 2 kids or paying family. we would rather pay family to watch our 9 month old and shuffle our 3 year old to and from half day school and watch him while not in school.

can i pay fair value (same price as daycare) to family for these duties performed? how will those payments be viewed by trustees?

thanks for your help.

[AngelinaCat]

I don't believe paying family to take care of the children would be a problem, as long as what you pay is in line with what the daycare providers in your area charge. I don't have first hand experience with that, though, so wait for some of the other members to chime in.

[trader19]

thanks angelina cat... hopefully someone with firsthand knowledge will jump in.

[keepsmiling]

I cannot imagine that there would be any problem with that. You are paying for a necessary service to work to pay your bills. You should have some kind of a paper trail for documentation.
It would be one hard hearted tt to make an issue of this. Others pay rent to their parents, this should be no different.