Legal Question in Bankruptcy in California
Does my son's grant money for college have to be included as his income when filing bankruptcy?
3 Answers from Attorneys
If he has dominion and control over it, if he can go spend it if he wants, if it would be available to his creditors if they sued him, then yes. How did a -college student- accumulate enough debt to file for bankruptcy??!?
I pressume that you were asking if your son's money should be included in your income when you file (not your son). If that is the case, then generally no as long as your son is not a minor. If he is a minor, then I would probably err on the side of caution and include it, as it is being used to pay an expense that you would otherwise generally be liable for (educational expense of a minor). You do, however, then get to take what you expend on his education as a deduction. If he is not a minor, it's a little more complicated because it may revolve around what level of support, if any, you are providing to him, and if he is living in your home or not. I would strongly suggest that you need to consult with an experienced bankruptcy attorney on this point, as you do not want to be seen as having excluded that income by the US Trustee who's next move might be to dismiss your case under �707.
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