Paying someone elses expenses while in Chapter 13

[ccmisery]

My fiancee lost her job needless to say it delayed all our plans for the near future, I'm currently paying for some if not all of her expenses which is not helping my debt situation as I'm $40K in credit card debt but on time with all my payments.

She can't find work and ran out of money sometime ago, I'm paying for her lease on her car and also car insurance and misc. expenses. She has a student loan that's in deferment which I know can be wrote off. She also filed Chapter 7 in 2001. I on the other hand never filed bankruptcy.

My question is, if I and when I file Chapter 13 how will this be looked at? Can I continue supporting her expenses or will she be forced to turn the car back in with 2 years + remaining on the lease? Will the courts and trustee not approve me supporting her financially?

[Flamingo]

Unless you claim your fiancee on your taxes as your dependent, her expenses are hers, not yours (unless your name is on them) and you are just being a good guy and paying them for her. It does not benefit you in any way. This is only going to get worse for you as you well know by now if your fiancee cannot find work to support herself as you will just put yourself deeper in debt. It all comes to a head eventually. As much as I know that you don't want to do it it is time to advise your fiance that the free ride is over and if you have to file BK, both you and she will have BK's on your credit reports (hers will come of in 2011) and if you file Chapter 13, it is on there for 7 years after the filing date. You both need to sit down and have a good talk about all this and it may not hurt you to go get a free consultation at a BK attorney to go over all these details to see where you actually stand financial-wise and if you can even file bankruptcy.

Best of luck to you both.

[magyar123]

Have to agree with Flamingo's reply - BUT on the other hand, she can file again, since she filed before (2001). This is 2009 - eight years later. As long as you're not married she can file separately from you,

[ccmisery]

I do claim her as a dependent on my taxes, since I have been supporting her and make 3 times the salary she makes. What I'm worried about is filing 13 (which one attorney already told me I have to file based on my salary) what I can and can't claim as an expense.

I'll have to ask this question in more detail, thanks.

[Flamingo]

I do claim her as a dependent on my taxes, since I have been supporting her and make 3 times the salary she makes. What I'm worried about is filing 13 (which one attorney already told me I have to file based on my salary) what I can and can't claim as an expense.

I'll have to ask this question in more detail, thanks.

If you already had a consultation with a BK attorney, did you ask him/her about the situation as to your fiance? If you claim her on your taxes as you state, if she gets a job, you cannot do that anymore. I suggest sitting down with a BK attorney and going over all your options to get your situation straightened out so you know exactly where you stand as to the state in which you reside and so your fiance can plan her future, and your future, accordingly.

[ccmisery]

Thanks, I met with one attorney so far but I did not care for his attitude and tactics, he told me I would pay back 100% under the 13 plan and when I added up the numbers I would pay back more then 100% of what I owed including trustee fees.

I'm planning to meet with another attorney, I don't know how many to meet before making a decision?

[justbroke]

I do claim her as a dependent on my taxes, since I have been supporting her and make 3 times the salary she makes. What I'm worried about is filing 13 (which one attorney already told me I have to file based on my salary) what I can and can't claim as an expense.

What's worse is that almost all Districts have determined that a debtor may not claim their unmarried significant other (fiance or not) when it comes to Chapter 13 allowed expenses.

While you can count them in the household, one Judge, in a very cold but true ruling basically agreed with the Trustee that because there is no legal binding that demands you pay the expenses of your unwed fiance/girlfriend... even though she had children and no job.

While claiming a person on your taxes is one thing... some Trustees have been going after these IRS-defined dependents, claiming that the creditors should not have to pay for a decision you made, by not being lawfully married.

Of course, if it's a common-law state (unlike Florida and some others), then you could claim common-law marriage, but may have to defend that.

Just some more information for you to chew on.

The only way to guarantee that this won't be an issue, is to get married. Otherwise, you'll be a single debtor and you will pay all your disposable income to the Trustee and Creditors. Maybe it's time to pop the question.