Can trustee object to my college tuition payments?

[ssmdem]

We're filing Chapter 7 - and at our last meeting with our attorney, she questioned the amounts I pay into my kids' pre-paid college plans. She said that of course the trustee couldn't take back what was already paid in, but that it would raise a few eyebrows that we're paying in that money that could be going to creditors. I checked into it, and my daughter's fund will actually be paid up and finished one month before we file. My son's I can actually defer the payments for up to six months, so I can show that we aren't paying into his currently at the time we file either. So, I think that's all taken care of.

But now I'm wondering about my own tuition. I'm currently trying to get my teacher certification finished up. I didn't even think to ask her how that would look. I want to get this finished so that hopefully after we are discharged, I will be able to find a decent job that pays more than what I'm making right now so we can get started back on the right foot. However, I'm wondering if the trustee is going to say something about the tuition amounts I'm currently paying - and if so, can he really do anything if we have a negative DMI even without the tuition payments?? Not making the house payment since we are surrendering it and essentially living rent free right now has freed up the money to finish out the tuition payments - which is $535 a month - and will also be completed and paid up the month before we file. Since it isn't going into a savings plan that is exempt though, is it going to hurt me in any way? Can the trustee make an issue out of it?

[ssmdem]

Has anyone ever filed before while they were in school? Was anything said about that? I'm really just worried about what could be said - or if it can be treated as an unnecessary expense? And if so, then what?? I'm not including it as an expense on my means test but just wondering if it's still going to be an issue.

I still owe $1605 before the end of the semester. I have that in cash that I can pay now - just would prefer to not use the cash for that. But should I so nothing can be said? I've already paid two payments of $535 each out of my checking account during the last three months-- and then two payments of $535 each were charged on credit cards before I knew we were filing.

[Exployer1234]

I am in school right now and the trustee did not say a word about it. Actually he did not even look twice at my schooling.

Are you tying to pay the loans off each semester or is it just a debt through the school?

I will be discharged in a couple of weeks and I am currently trying to get all my grants and loans for the fall. I am also trying to finish my teaching degree. The only thing the school has asked me for is a letter from the trustee stating I could have another loan. I had to submit a statement that I am a Chapter 7 no-asset case and the trustee has already finished with my case. My lawyer is also submitting a statement as well.

If you are able to obtain grants or other aid for the fall it may be a little easier. You will not have to make the payments, but if you chose to do so that is fine.

[ssmdem]

I am in school right now and the trustee did not say a word about it. Actually he did not even look twice at my schooling.

Are you tying to pay the loans off each semester or is it just a debt through the school?

I will be discharged in a couple of weeks and I am currently trying to get all my grants and loans for the fall. I am also trying to finish my teaching degree. The only thing the school has asked me for is a letter from the trustee stating I could have another loan. I had to submit a statement that I am a Chapter 7 no-asset case and the trustee has already finished with my case. My lawyer is also submitting a statement as well.

If you are able to obtain grants or other aid for the fall it may be a little easier. You will not have to make the payments, but if you chose to do so that is fine.

This is an alternative certification program. I already have a degree - just getting the certification now. It's done through the continuing education program - 11 month program in 7 units ($535 a unit). Just got to wondering since my attorney felt the trustee might not be real thrilled about me paying into the kids' prepaid plans, that he may have an issue with this too. I still owe August, Sept, and Oct's payments -- just didn't want anything to be said about me paying this instead of my credit card payments.

For the record, I did make the minimum payments after I charged those two units on my credit card - the minimum payment on the card was actually more than the charge - so hoping they don't file an AP when I file for bankruptcy.

[bakergrl]

I filled while in college and the trustee did not say anything about it. Now the kids is another thing all together because the trustee may look at it as you can't pay your credit card debt but you have money to put towards your kids future education, kwim? If it is a lot a month you pay for that they may question you or may not include that as an expense (even if you stop paying because they go back 6 months).

[ssmdem]

I filled while in college and the trustee did not say anything about it. Now the kids is another thing all together because the trustee may look at it as you can't pay your credit card debt but you have money to put towards your kids future education, kwim? If it is a lot a month you pay for that they may question you or may not include that as an expense (even if you stop paying because they go back 6 months).

I'm not counting it as an expense, never intended to. We're negative without it. She was just saying they may question it. But since it's already paid in, what's there is already exempt. If we're not paying into it at the time we file - I really don't see that they can say much. Kinda like money that's already been put into a 401K. It's payments we've been making for five years, way before we started thinking bankruptcy.