How can I protect this asset?

[teresa]

I first considered going BK when I had to once again dip into my kids accounts to pay my mortgage payment this month. This is money that my children get from SS because their dad (my ex) has retired. I have a child support order which is to be paid out of those funds, roughly 2/3 of the total they get each month. I thought by going BK that that money would be safe, but it looks like it will have to be included as an asset. OK, I thought, maybe only the 2/3 of it will be eligible, but my attorney says no, if you've been using all of it, then all of it goes to repay. I'm bummed.

No I'm thinking, if I get stuck in a 60 month plan, what happens when it's time to pay tuition? I won't have their SS money to do it, will the trustee make an adjustment? I've been hoping my kids would get the chance to go overseas during HS, will a trustee allow the funds for that? Looks like my kids will be getting ripped off and will pay more through this plan than me!

Does anyone know how or if I can protect this money?

Thanks

[SinkingFast]

I would get more opinions.

We're kinda going thru the same thing with my Mom. I guess the Court has decided that anyone you can claim on your income taxes as a dependent counts as a member of the household. So we get to claim my Mom for BK. Yeah for us that it puts us below the Median.

But,........ Mom draws Social Security. Social Security is exempt income in the New BK Law. But we have to address the, "Does Mom contribute to the household expenses" question. The attny we're going to chat with said all we'll have to do is submit a couple months of Mom's bank acct statements as proof of what she does with her money. That she pays her insurance, her Plan D payment, buys her drugs, and such. That her SS income is basically a wash. She actually spends out more each month than she takes in and has dipped into her savings.

Anyway, I think you'd only have to claim the portion of SS benefit that actually contributes to the household expenses. I wouldn't think the total SS benefit would be included.

And, as the kids loose SS benefits due to age, you can have your plan modified for the decrease in income.

At least that's the way I think it should go. Chat with some more attnys and see what they have to say about SS income.