Today 02/11/2012
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daughter’s income and surplus in bankruptcy

Question: I am in bankruptcy and my daughter lives with me. She is 18 and very soon she will be working. Are her wages considered part of my surplus income although she is not planning to contribute money to me.-(very unlikely)she does her own income tax and very likely will move out soon but while she is living with me what do I do about her income??

Answer: The surplus income calculation is based on the size of your family unit.  If your daughter is simply a boarder, and is not contributing to the household, you would be considered a single person, and her income would not be included in the calculation (but you would also not get credit for her as a dependent).

Each month the calculation is done again, so once she moves out she is clearly not part of the family unit, so at that point it would not be an issue.

We suggest that you discuss this in detail with your trustee, so that they can advise you on the specifics of your situation.

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