Adoption Subsidy for Special Needs Child - income?

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Latest post Tue, Jul 18 2006 7:21 PM by Debi1. 7 replies.
  • Tue, Jul 18 2006 6:59 PM

    • Debi1
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    Question [=?] Adoption Subsidy for Special Needs Child - income?

    Hi, We are in colorado, will be filing Chapter 7 next week, We have adopted a special needs child (5 yrs ago) we currently receive a subsidy for her...our attorney's assistant is saying this is considered income....I don't believe it should be. Or is...does anyone have any idea? thanks, debi
  • Tue, Jul 18 2006 7:11 PM In reply to

    • DOCAR
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    Feedback [*=*] re: Adoption Subsidy for Special Needs Child - income?

    Whether it should be or not is not the question. Under the new bankruptcy law it is considered part of the household income that is used for the means test.
  • Tue, Jul 18 2006 7:11 PM In reply to

    re: Adoption Subsidy for Special Needs Child - income?

    What's the basis for your belief it's not includible?

    As I read the form, it is includible in CMI unless it is a payment under the Social Security Act.

    If you are above median income, there may be opportunities to deduct out the expenses that the subsidy pays for. later in the form

    Call the lawyer's attention to this issue. This law is so new that no one should be relying on paralegals or assistants for the last word on anything.

    Cathy Moran
  • Tue, Jul 18 2006 7:12 PM In reply to

    re: Adoption Subsidy for Special Needs Child - income?

    And if this seems unfair, talk to your representatives in COngress who saddled us with this mess.

    Cathy Moran

  • Tue, Jul 18 2006 7:21 PM In reply to

    • Debi1
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    More [=+=] re: Adoption Subsidy for Special Needs Child - income?

    You know, when we are done this MESS, I do believe I will. We had a perfect perfect 802 fico score record our whole lives, then the world fell apart in the last two years. I personally feel like we're treated like some kind of "liars" thru this whole process, and dont' really see how there is "relief" in this process. We may be above the amount for the means test, we'll know Monday...if we are its above by $1000 or less....then we look at chapter 13. We appreciate our attorney, its the process and laws that are phenomenol to us. Just having to file this is horrendous to us to begin with...then, with the laws...UGH!!!!! Oh well, thanks for the info, and letting me vent. Debi
  • Tue, Jul 18 2006 7:27 PM In reply to

    Feedback [*=*] re: Adoption Subsidy for Special Needs Child - income?

    My take on this (and I'm not an attorney) ...

    Your attorney's assistant is correct that you do need to provide the information about it to the attorney's staff. It is household income, and it needs to be accounted for correctly in your bankruptcy paperwork.

    Whether or not it counts as "income" for purposes of the Means Test (which, I assume, is what you're concerned about) is a legal question that may depend on specific details.

    But you do need to give your attorney's staff the correct information about it so that it can be accounted for correctly in the paperwork.

    There are different definitions of "income" that come into play in different places the bankruptcy paperwork. Just because something is considered "income" in one sense / place / schedule / form does not necessarily mean that it will count as "income" in every other part of the paperwork.
  • Tue, Jul 18 2006 7:30 PM In reply to

    Agree [=|=] re: Adoption Subsidy for Special Needs Child - income?

    Oops, I was apparently composing my response at the same time everybody else was.

    I completely agree with Attorney Moran - including the part about calling your lawyer's attention to it, and not relying on support staff for the final answer.
  • Tue, Jul 18 2006 9:10 PM In reply to

    re: Adoption Subsidy for Special Needs Child - income?

    Have you actually looked at the means test form B22a?

    Or are you just having a emotional reaction because somebody said your subsidy is income?

    If you haven't actually looked at the means test form B22a, look at it now:

    http://www.uscourts.gov/rules/Revised_Rules_and_Forms/BK_Form_B22A101105.pdf

    Especially all the parts that let you list your monthly expenses like:

    Education for a physically or mentally challenged child.

    Childcare.

    Healthcare.

    Etc, etc, etc.

    So if you are actually using that subsidy for the additional expenses relating to the child I'm guessing you will find that the subsidy might be more than offset by the expenses and not have any effect on the net amount for the means test.

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