payments to "dependents" not living at home
Posted: Tue Feb 09, 2010 2:20 pm
My own experience, your mileage may vary:
A) If they're regular ongoing support of a few hundred bucks, I don't
categorize as transfers.
2) Recoverable? Has never been an issue in my experience.
III) Yes. Whether allowable is fact-specific... can be first documented by
Declaration and depending on the rest of the Schedule J, determined for
reasonableness by a person in a black robe.
Don't forget to put it on B22 and be prepared to back up why it should be
allowed when OUST challenges (see: III).
Mirrors the same issues with parents who support their non-minor children.
How much is "too much" just depends on your trustee and judge. Hale
Mark J. Markus
Sent: Tuesday, February 09, 2010 11:05 AM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] payments to "dependents" not living at home
This is pretty common, but just wondering what experiences/thoughts the
group has on this:
Debtor sends a few hundred dollars a month to her mother who lives overseas.
Debtor lists mother as a dependent on her tax return (although I'm not sure
that's particularly relevant from a bankruptcy standpoint).
A. Must the transfers to her mother be listed on SOFA #10?
B. Can the money transfered to her mother be recovered by a Trustee in a
Chapter 7?
C. Can the money she gives each month be used as a necessary budget expense
item on Schedule "J"?
And, how hard would it be to get a family law court to order support of the
mother (in a foreign country)?
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Mark J. Markus
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