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discretionary expense on Schedule "J"
Ty, I have had several clients whose expenses included children they were supporting who were away at college and have never had these expenses questioned by the trustees. One of my clients had $700 per month in their children's expenses for three children who were all attending different colleges. Check with others.
Wayne A. Wilhelm, Esq.
Tyson wrote:
I'm in the process of filing a Ch. 7 in LA but would like some
opinions on one of my client's expenses. She pays $375.00 per month
for her 20 y.o. daughter's college room and board. If my client
didn't pay this, she could theoretically pay back 75% of her unsec.
debt over 60 months. Client claims daughter as a dependent for tax
purposes. Any/all opinions would be most appreciated!!!
Ty Takeuchi
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Ty, I have had several clients whose expenses included children they were supporting who were away at college and have never had these expenses questioned by the trustees. One of my clients had $700 per month in their children's expenses for three children who were all attending different colleges. Check with others.
Wayne A. Wilhelm, Esq. Tyson <lurpnlaw160@hotmail.com> wrote:
I'm in the process of filing a Ch. 7 in LA but would like some opinions on one of my client's expenses. She pays $375.00 per month for her 20 y.o. daughter's college room and board. If my client didn't pay this, she could theoretically pay back 75% of her unsec. debt over 60 months. Client claims daughter as a dependent for tax purposes. Any/all opinions would be most appreciated!!!Ty TakeuchiDo you Yahoo!?
Yahoo! Small Business $15K Web Design Giveaway - Enter today
The post was migrated from Yahoo.
Ty,
This is an interesting issue. My first thought is that the Chapter 7
and/or US Trustee would say that it is not reasonable and necessary
to support an adult child. And, I am certain that any Chapter 13
trustee would make that argument. However, your client's position
has occurred to me as well--a child can be claimed as a dependent
until age 24 (I believe) if the child is a student and the tax payer
provides a certain percentage of the child's support. This issue
really hinges on the definition of "dependent."
Also, you might want to calculate the client's tax obligation without
the dependent--if the child is not a dependent, theoretically the
client's tax obligation would increase. If the child is not
considered a dependent for the bankruptcy, but is a dependent for tax
purposes, does the estate get the benefit of the decreased tax
obligation?
Finally, I wouldn't calculate the percentage for a Chapter 13 plan
for 60 months. 36 months is the minimum required. However, the US
trustee has been lowering the "threshold" for 707 motions, so even if
the percentage would be low it doesn't necessarily mean that no
motion would follow.
Melissa Besecker
> I'm in the process of filing a Ch. 7 in LA but would like some
> opinions on one of my client's expenses. She pays $375.00 per
month
> for her 20 y.o. daughter's college room and board. If my client
> didn't pay this, she could theoretically pay back 75% of her unsec.
> debt over 60 months. Client claims daughter as a dependent for tax
> purposes. Any/all opinions would be most appreciated!!!
>
> Ty Takeuchi
The post was migrated from Yahoo.
Try it and see what happens. Can the daughter afford to pay this herself? CF
To:
Sent: Tuesday, April 06, 2004 9:34 AM
Subject: [cdcbaa] discretionary expense on Schedule "J"
> I'm in the process of filing a Ch. 7 in LA but would like some
> opinions on one of my client's expenses. She pays $375.00 per month
> for her 20 y.o. daughter's college room and board. If my client
> didn't pay this, she could theoretically pay back 75% of her unsec.
> debt over 60 months. Client claims daughter as a dependent for tax
> purposes. Any/all opinions would be most appreciated!!!
>
> Ty Takeuchi
>
>
>
>
>
>
> Yahoo! Groups Links
>
>
>
>
>
>
The post was migrated from Yahoo.
I'm in the process of filing a Ch. 7 in LA but would like some
opinions on one of my client's expenses. She pays $375.00 per month
for her 20 y.o. daughter's college room and board. If my client
didn't pay this, she could theoretically pay back 75% of her unsec.
debt over 60 months. Client claims daughter as a dependent for tax
purposes. Any/all opinions would be most appreciated!!!
Ty Takeuchi
The post was migrated from Yahoo.