change in dependents does that mean payment change?

[dovette7]

We have been in a CH 13 for one year in Feb. We have a total of 5 people in the house including my daughter and her son which we claim as our dependents. She may move out this year in order for her to be able to qualify for Pell Grants b/c even though we are in a Ch. 13, with out income she would only be able to get loans.

If she moves out with her son, then we have 3 people in the house. The means test and all that was based on 5 people. Since there will now be 3 people...what will happen? Does the trustee get the tax returns back and decide to up the payments?
I haven't found anything on this so thought I'd ask..thanks!

[magyar123]

Was your daughter working when you filed? If so, did you include her pay into the "total household income" figure when you filed? If so, your household income is reduced when she moves out - but you're also losing her son as a dependent. Might become a "wash".
If not then you will lose her and her son as dependents, and possibly be sentenced to a increase in the plan payment.

[rrockinggramma]

is your case already confirmed? And did her income contribute to the plan payment? If not, lets say she just lived with you and you supported her but now she is moving out on her own with her child, I would notify your attorney but other than that I don't think it will matter. Your plan payments are set and was based on your situation at the time of filing. Unless you have a trustee that monitors every little change and is willing to constantly be changing and modifying plans, I don't think it will change anything for you. Call your attorney but I bet it makes no difference.

[Flamingo]

We have been in a CH 13 for one year in Feb. We have a total of 5 people in the house including my daughter and her son which we claim as our dependents. She may move out this year in order for her to be able to qualify for Pell Grants b/c even though we are in a Ch. 13, with out income she would only be able to get loans.

If she moves out with her son, then we have 3 people in the house. The means test and all that was based on 5 people. Since there will now be 3 people...what will happen? Does the trustee get the tax returns back and decide to up the payments?
I haven't found anything on this so thought I'd ask..thanks!

It appears you were claiming your daughter and grandson as dependents on your tax returns. Note that your Chapter 13 Plan is based on a spread of 3 to 5 years beyond your date of filing and any changes to your financial situation during that time (especially a major one like this) should be reported to your attorney to find out what, if anything, needs to be done. With the loss of two dependents from your initial filing status, you would now have more disposable income available which may or may not require your plan to be modified. Since she has not yet moved out, I would certainly check with your attorney to find out any implications that could come out of the situation as to your Plan. Does your daughter have the funds available to be able to support herself and her child out of your house if she should move out? There will be added expense there for her plus loss of two dependents for you. Get some advice from your attorney on this one before she makes the move to ensure she is making the right one at this point.