Paying for your child’s college expenses won’t help you qualify for Chapter 7
Thanks to the means test, in order to qualify for chapter 7 bankruptcy your disposable income must be under a certain level. Basically if you have lots of money left over after “allowed” monthly expenses, you may not qualify for chapter 7 under the “new” bankruptcy laws. Car payments, house payments and many other living expenses can be subtracted from your monthly paycheck so that you can qaulify for chapter 7. Unfortunately, any money you spend to pay for child’s college expenses usually will not be an allowed deduction.
So, if your eighteen year old daughter is living in a different city and attending school, the money you spend to support her like her car payment, rent, or tuition are usually not allowable deductions in calculating your disposable income. There are exceptions to this general rule and a competent bankruptcy attorney will apply that exception to you if it applies.
Stephen Trezza Law – Tucson Bankruptcy attorney
(520) 327-4800
