bankruptcyinstruction

If your spouse files a bankruptcy, will that affect your ability to pay for your children’s continuing education?  It all depends on what level of education your children are attending.

The new (now nearly 2 1/2 years old) bankruptcy law specifically allows a debtor to deduct from the means test a certain amount for education expenses for your dependent children under 18 years old.  But it only allows a monthly deduction of up to $137.50 per child for attendance at a private or public elementary or secondary school.  If only your spouse is filing the bankruptcy, and if your children’s school expenses exceed that amount, you can take the position that you, not your spouse, will be paying the difference.  Your spouse’s trustee, however, may not agree and may make a claim on what s/he may consider to be additional disposable income.

What if you are putting your child(ren) through college.  Are college tuition, room, board, books and supplies legitimate expenses in the eyes of a bankruptcy trustee?  Often a trustee will not agree that your efforts to put your kids through college should take priority over paying your spouse’s creditors.

As always, I strongly recommend that you discuss these matters with a knowledgeable bankruptcy attorney.

Next: Will my spouse’s bankruptcy affect my ability to contribute to my retirement or pay back a retirement loan?

Referred from: (http://www.bankruptcylawnetwork.com/)