Bankruptcy Question & Answer Forum - Canada

Author:		Libby
Date:		October 5, 2005
Question:		I am considering filing for bankruptcy as a last resort due to a large amount of debt that resulted from my ex-husband's business failure while we were still married. My question is in regards to child support. My daughter is 21 and has now returned to school to further her education. Since she could certainly make good use of some extra money now I am considering asking my ex-husband to pay child support again under the guidelines of the divorce judgement now that she is a full time student again. Would those child support payments be considered income for me and be included in the calculations the trustee would make to determine how much money I would have to pay toward my debts/bankruptcy each month? Since I would not actually have any of the money myself from the child support payments (all of it would go to my daughter) that is a concern for me.
From:		Bruce, Alger & Associates Inc.
Date:		October 5, 2005
Answer:		The court order would be payable to you, therefore you would have to bring it into your income and claim your daughter as a dependent. If you claim your daughter as dependent, you would also have to report any income of your daughter. An alternative would be to have her father pay funds directly to her (i.e. your daughter) outside of the court order. Bruce Alger phone: (403) 296-2970 balger@alger.ca