Chapter 7 & death of a dependant

[VegasMama]

I have kind of a weird question but hope someone has an answer to it. My husband and I are in the beginnings of filing bankruptcy. We just meet the means test for chapter 7. However, our oldest child is terminally ill and is unlikely to make it through the time it takes to finish this bankruptcy. My question is, do we have to disclose her death as we are going through this bankruptcy, when it occurs, and if so, what effect will that have on our availability to file chapter 7?. With one less dependent, I'm not certain our income will still meet the means test, however our debt is still the same. Anyone have any answers here? Her ongoing illness has been what has put us into debt and I'd hate to think at a time when we are losing her as well, we'd be penalized as well.

[Meatstick]

First off let me say how sorry I am about your daughter. I wish your family all the best. With that said I am sure your family medical bills are thru the roof and that could be a "Special Cirumstances" arguement to allow a Ch.7 with or without passing the means test.

[justbroke]

I would like to send my sincere sorrow through this troubling time. I had a sibling who went through a rough few years and passed away, but will never be able to sympathize with what a parent goes through.

The only thing that you may cause you some financial grief, is if you have an insurance policy on your child and you are a beneficiary. Some States allow you to exempt (keep) all or parts of any insurance proceeds or other death benefits. You'll have to work with your attorney on those finer points.

As stated, I'm sure that you should make it through your Chapter 7 without any issues to prolong the suffering you're already going through. I don't think any Trustee (Panel or United States Trustee) would give you additional grief.

[JEM]

I am so deeply sorry for what your family is going through. I can't even imagine. I will keep all of you in my prayers.

[MSbklawyer]

With that said I am sure your family medical bills are thru the roof and that could be a "Special Cirumstances" arguement to allow a Ch.7 with or without passing the means test.

No, there is no such compassion or 'special circumstances' in the means test. That's one of the hardest things for a person to live through -- the death of a child, but if you're not filed before she dies, you've got one less dependent. The means test doesn't care why you have one less dependent, just that you have one less dependent. If you're borderline 7 now, you'll likely be pushed into a 13 with one less dependent.

I know that it seems distasteful to plan financial decisions around something so tragic as this, but you should try to file, if at all possible, prior to her death.

[confusedNNor]

Dear VegasMom: I too, will say prayers for you and your family. I cannot even imagine what you are going through.

[DEBTCHAINS]

You are in my prayers. I'm so sorry, I also couldn't imagine losing a child. God be with you and your family.

[ready2file]

A parent's worse nightmare...my condolences.

[VegasMama]

Thank you all for your well wishes. This has been the hardest thing in my life to deal with, even worse than the loss of my parents. I guess the best option would be to get this filing done as quickly as possible.

[Mensa1]

Wishing you strength to endure this unbelievably tradgic situation. I suppose that puts the horror of Bk into context, doesn't it.

Is the source of the problem presenting the financial distress and Bk issue related primarily to medical expense? Are additional med exp's likely to continue to accumulate due to additional care of your child? If so, you may be better served to wait until the accumulation of med exp's has stopped. New expenses after the filing date may not be discharged by the Bk, so make certain that when you do file it encompasses ALL of the problem.

God Bless with all you are dealing with.

[LALADY]

I think (I'm sure someone will correct me if I'm wrong) that emergency filings can be done.

God bless you and yours.

[VegasMama]

Wishing you strength to endure this unbelievably tradgic situation. I suppose that puts the horror of Bk into context, doesn't it.

Is the source of the problem presenting the financial distress and Bk issue related primarily to medical expense? Are additional med exp's likely to continue to accumulate due to additional care of your child? If so, you may be better served to wait until the accumulation of med exp's has stopped. New expenses after the filing date may not be discharged by the Bk, so make certain that when you do file it encompasses ALL of the problem.

God Bless with all you are dealing with.

Actually it's not medical expenses that are the source of our debt. It is the fact that I had to leave a $75,000 a year job to become a stay home mom. So our annual income went from $160k to half that with the same expenses, not to mention 4 other children. We do have some medical expenses but they are minimum compared to the debt incurred just keeping our family afloat. So we have set up a savings account in her name only to pay for her final expenses and my husband's insurance have paid for the bulk of her actual medical expenses, all we have left now is daily medications which run about $1700 a month. All in all it sounds like our best bet is to final sooner than later. I made an appointment for the 17th. Personally the stress is enough to drive a normal person over the edge, I am just surprised and happy our marriage has survived this. It definitely does take a toll. Thanks for all the support!!

[ryan]

I cannot begin to imagine what anguish you must be feeling.... take comfort in the Lord and know that He will watch over your daughter. Regards.