College Tuition

[imoverit]

I am looking at Chapter 13 and also going to a local community college, can I include the monthly tuition payments (not a loan) as part of my living expenses? Or is that considered a luxury and I would have to pay it out of money left over (if any)?

[lrprn]

I am looking at Chapter 13 and also going to a local community college, can I include the monthly tuition payments (not a loan) as part of my living expenses? Or is that considered a luxury and I would have to pay it out of money left over (if any)?

I hate to say it, but it's going to depend on your trustee. A few will consider taking some of your income out regularly to pay tuition (a voluntary cost because no one is forcing you to go to school) that could be used to pay creditors a luxury, but most will be fine with it as long as you are not taking on new debt during your 13.

Set up 3-4 appointments with experienced lawyers who file lots of Ch 13 cases in your area. Most still have free initial consultations. This is the most reliable way to find out where you'll stand on your ongoing school tuition payments. Good luck - hope things go your way!

[HHM]

Yeah, this is one of those "ify" issues. It will depend on the amount and the purpose of the education.

However, the rule is, you only get to deduct necessary living expenses, and its a tough argument to make that the debtor going to school is a necessary living expense.

I have seen the argument made in a chapter 7 case where for purposes of the "abuse test" the debtor was allowed to include education expenses because it was related to job retraining, but never seen it done in a chapter 13. (note, the debtor was only just barely over the median in that case).