If you’re filing for Chapter 13 bankruptcy, you’ll need to carefully plan for how it will impact all areas of your life and the lives of loved ones. Many people who file for Chapter 13 bankruptcy have concerns about how it will affect their children. The following are some of the issues that need to be considered:
Child support. Child support payments will become a part of your repayment plan during Chapter 13 bankruptcy. Child support in general is prioritized by the courts, considering that it affects the welfare of children.
Private school tuition. If your kids attend private school, the courts will need to decide whether or not you’re allowed to continue paying tuition. Several factors will affect their decision, including the nature of your debt, your repayment plan, your current income, the amount of tuition, and concerns about your children’s well-being, such as the need for you to keep them out of low-quality public schools; furthermore, if you’re sending them to private school for religious reasons, you may argue in court that they need to continue their studies at their current school.
College education. Even if you’ve recently filed for bankruptcy, your child will still be able to receive various grants, scholarships, and federal student loans. Private student loans, however, will be extremely difficult to obtain. Your application for a PLUS loan might also be rejected, though you improve your chances of getting one if your cosigner has a strong credit history.
Children’s belongings. In Chapter 13 bankruptcy, you’re allowed to hold on to your property, including your home and belongings; this also encompasses the furniture, toys, and other possessions you’ve given your children. Even if your property were in jeopardy, the courts typically wouldn’t focus on individual belongings such as furniture or toys.
Children’s bank accounts. If you’ve opened up a bank account for your child, the contents may be counted as yours if it’s open under your name. You would need to provide proof that the money is actually held for your children and not for your personal use.
To obtain fair treatment for yourself and your family during the bankruptcy process, you would benefit from consulting with a Dayton bankruptcy lawyer if you live in Ohio. Contact us to review your case, address concerns, and figure out the best path for yourself and your children through the bankruptcy process.