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    Foster care money

    I have a question I am filing chapter seven on Monday and was worried about
    my fee I recive for being a foster parent. This amount of money is non taxable because it is for the day to day living expenes of my foster child and you do not recive a w-2 or 1099 for it. (Side note she is leaving our home Dec 17th that is the current plan). But this fee is well above the normal it is $1500,00 per month because she is a special needs child and her need cost a lot. She is only 10 and was in a hospitial for 18 monts before we took her in. We must pay for any special care that is non medical.
    Well in June of 05 we bought a new truck our old one blew up. And I used the foster care money as income on the app with the credit union to show we do have more than enough income to make the payment. We are wanting to keep this truck my husband is in constuction and needs it.
    Can the credit union use this aganist us. We are still reciving this money but after Dec we are not going to do it anymore the whole foster care thing has become to hard on my family and once we are finished with our work with this last girl we have promised our children no more. I am really worried that this could force us to convert to 13 but our foster parent fee end the day the child leaves.
    My story:
    We have $62,000 in credit card debt
    Truck payment $674.00
    Travel trailer payment of $254.00

    and two homes one is a rental unit that we have been pitiching in $750,00 for the 2nd mortage tenets have been paying rent to equal 1st mortage $2000.00. they have not paid the last two months and the evection cost and the money to keep the payments up are more then we have.
    The plan is to let the rental unit go in the bankrucpty total owe is $340,000.00 worth 355,000.00- $370,000.00 but nothing is selling in this area we had planed on renting for two years and then selling when the market improved home mortage is Wam mu I called them up to see if we could hand the house over to them but was told no. Also lawyer says we have to get the tenents out. I also tried the refy way no savings Real savings in total monthley payment just add another 5000. to balance.

    I am not the land lord type we have only been doing this since 12/23/04 so less than a year so this has been hard on us. I had My hip and knee replaced in late 2003 so the two story house became a problem for me to go up and down it also has a sunken living room and family room master suite is and extra three steps up to on the second floor. We Bought a Ranch style house for me in 12/04 and thought we would sell the big house but no one wanted to bye it and we had to rent it. We did not have the money to pitch in for a short sale and no one offered. Very nice house with eveything in top notch shape its just home owners selling are going below market just to sell.

    The home we live in payments are 1940.00 and we are planing on keeping it
    if any one has anything they can share please do so. I am still in the crying mode wondering like all of you how did I get here and will things be ok.
    .

    #2
    I am a foster parent too!

    I don't have much time to write at the moment but what are your exact concerns regarding your reimbursements and your foster child and bk?

    Comment


      #3
      Not sure if you're trying to file by the deadline or not...

      Giving up the rental house in the BK shouldn't be an issue. I would imagine that in the foreclosure process the house would ultimately be evicted. If you're giving it up, it doesn't make since that you'd have to evict the tenants yourself.

      I would suggest see an attorney, if you haven't already. (And if you haven't already, its safe to say you're looking at filing after 10-17.) I understand the new laws look at your last 6 months of income, and you didn't provide any information for your family's regular income, etc. If you don't have to pay the 1st & 2nd on the rental house, where do you stand regarding income & expenses? How does your income & expenses compare to the IRS standards for your area? Your mortgage (that you live in) seems high compared to my rent, but we don't live in the same area so they can't really be compared.
      Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.

      Comment


        #4
        Our gross income is $7000.00 our take home is $4800.00 after taxes and medical insurance. We do want to file under current law. We are a faimily of four and one foster child.
        We are willing to let rental house go and not worry about the tenents if that is possible that is the route we will take.
        My concern is we want to do a chapter seven and worried we could be charge with fraud because on one had we used the foster care money as income to help us get an auto/home loan and then on the other hand are hoping that they wont count it as income in the chapter 7. Mostley worried because we are not going to have it after Dec and if they fource us into a 13 you pay back what is left and if they use it we will have extra income. But not after Dec. We caint wait untill Dec to file because we need to figure out what to do with the rental house.

        Comment


          #5
          Regarding the foster care-you have extra expenses as a result of having the foster child, and both those expenses & income will go away in Dec. so your bottom line is the same, right?

          I don't think using the foster care $$ as extra income on the loan apps is really an issue for BK. Fraud would come into play if you had made cash advances, bought large items recently, or otherwise used credit with no intent to repay it.

          If you're letting the rental house go-don't make any more payments on it & start the BK process ASAP. With $4800 gross pay, and the home payment & car payment you mentioned, plus food, utilities, gas for vehicle, and other living expenses for 2 adults & 2 children - I doubt you'll have issues showing where your monthly budget takes all of your gross pay. You will need to remain current on home & vehicle.
          Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.

          Comment


            #6
            thanks so much I will sleep much better tonite. the peopel here are the best

            Comment

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