Son turns 18 and I stop pay support - can I keep extra money?

[sscott91343]

My son graduates this month and I will no longer be required to pay child support. Will the trustee even know? Should I be worried about the extra income?

Appreciate a response from anyone who has been through this specific situation.

Thanks!

[MomIcantFindmy]

You will have to give more information. Are you in a chap 13 pay plan? or are you in the middle of filing and asking this for your schedules?

[sscott91343]

Hello. We are have been in a ch 13 plan for about a year now. I was looking forward to the increase in disposable income. Hoping I could keep the money. Not sure how the trustee would be aware of it though.

[Flamingo]

Your Plan was confirmed at the time of your filing with you having to pay that expense. You need to contact your attorney that you no longer are required to pay child support so that your plan can be modified accordingly. You are risking dismissal if you do otherwise and do not report this change to your attorney.

[sscott91343]

So then, any expenses and/or debt that are responsibly reduced are also considered extra income?

[justbroke]

So then, any expenses and/or debt that are responsibly reduced are also considered extra income?

In the most technical sense... yes. However, and as Flamingo suggest, contact your attorney. Local Rules prevail and the local rule may not require you to report certain changes in disposable income. For example, it's not too uncommon for a District, by local rule, not to care about additional disposable income that is less than 10%. However, you must remember that the Trustee is trying to get creditors paid. If you are not in a 100% plan, I can't tell you what they will want.

If your Trustee requires tax returns (not refunds, returns), they wil see the next year's return and notice that you don't have that expense anymore. They may or may not take action to modify your confirmed plan.

Again, speak with your attorney.

[sscott91343]

Understood. I did consider the tax returns, but, actually, the child support is NOT tax deductible and would not effect my return whatsoever. The only evidence that I am not paying support would be the date of termination on my divorce order, which I am pretty sure, is not scrutinized by the Trustee.

[justbroke]

Understood. I did consider the tax returns, but, actually, the child support is NOT tax deductible and would not effect my return whatsoever. The only evidence that I am not paying support would be the date of termination on my divorce order, which I am pretty sure, is not scrutinized by the Trustee.

I was thinking more if you are the parent who gets to claim the child as a dependent. Well understood that child support is not an itemized deductible expense. I was just more concerned with other things on your return (child tax credit, dependent credits, an actual named dependent) that could affect you. However, if the child (adult now) is still in school... it may be moot?

[sscott91343]

Thanks for your response. Yes, my son is graduating at the end of this month. He already 18 so this is it. I was hoping to keep this money. I really don't see how the trustee would be aware of it.

[justbroke]

Thanks for your response. Yes, my son is graduating at the end of this month. He already 18 so this is it. I was hoping to keep this money. I really don't see how the trustee would be aware of it.

Yeah, I don't really think that they would notice unless it glaring and obvious from your tax return. Best of luck with graduation and your case!

[Flamingo]

Thanks for your response. Yes, my son is graduating at the end of this month. He already 18 so this is it. I was hoping to keep this money. I really don't see how the trustee would be aware of it.

Don't assume anything about your Plan or a Trustee. To protect yourself, give your attorney a call and ask. Since after you stop paying the support you have more disposable money available than at the start of your plan. It's taking a heck of a risk thinking this might not get caught. You are only one year into your plan....not at the end.

[bigreddog]

[QUOTE=Flamingo;278374]Don't assume anything about your Plan or a Trustee. To protect yourself, give your attorney a call and ask. Since after you stop paying the support you have more disposable money available than at the start of your plan. It's taking a heck of a risk thinking this might not get caught. You are only one year into your plan....not at the end.[/QUOTE

I hope this isn't wrong butting in. But..... I didn't have child support end, I had a lease AND a secured creditor paid off. I've looked over our pacer reports and our actual filing papers and confirmation forms and see nothing requiring sending in tax returns OR notifying them when pmts. were done. I emailed our attorney and he said with the economy (food costs, heating oil and gasoline costs alone) our trustee isn't going to squawk. Could he be right?

[DeadManCrawling]

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I hope this isn't wrong butting in. But..... I didn't have child support end, I had a lease AND a secured creditor paid off. I've looked over our pacer reports and our actual filing papers and confirmation forms and see nothing requiring sending in tax returns OR notifying them when pmts. were done. I emailed our attorney and he said with the economy (food costs, heating oil and gasoline costs alone) our trustee isn't going to squawk. Could he be right?

This varies by district. And trustee. What happened to you probably has no relation to what COULD occur to the poster. Hard to believe, but ther eis much room for interpretation among trustees and judges.