In a bankruptcy, is adoption subsidy considered income? 15 Answers as of October 03, 2012I have contacted several lawyers in my area, and have been unable to get a yes or no answer to this question. What I have been able to find on my own research is that adoption subsidy is reimbursement not income.
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
For purposes of the means test, it is "income." On the form it asks for regular contributions to the household. Shame on the lawyers that can not answer this question. The only income excepted is social security benefits.
Answer Applies to: California
Law Office of Norman Moore | Norman P Moore Jr
Yes it is. The bankrupcty court looks (in determining the average monthly income) at "all sources that the debtor receives (or in a joint case the debtor and the debtor?s spouse receive) without regard to whether such income is taxable income...and includes any amount paid by any entity other than the debtor (or in a joint case the debtor and the debtor?s spouse), on a regular basis for the household expenses of the debtor or the debtor?s dependents (and in a joint case the debtor?s spouse if not otherwise a dependent), but excludes benefits received under the Social Security Act, payments to victims of war crimes or crimes against humanity on account of their status as victims of such crimes, and payments to victims of international terrorism (as defined in section 2331 of title 18) or domestic terrorism (as defined in section 2331 of title 18) on account of their status as victims of such terrorism."
Answer Applies to: Wisconsin
Wild Sky Law Group, PLLC | Roxanne Eberle
I don't think there is a simple yes or no to this question. I think lawyers generally need more information to do research and give advice. However, depending on your total income, it may not matter whether or not the adoption subsidy is considered income or not for the purpose of your bankruptcy.
Answer Applies to: Washington
Attorney At Law | Harry D. Roth
The question is both clearer and not as clear than the answers you have been given. Start with the notion that everything is income unless it is specifically dealt out. Social Security, disability income and public assistance are excluded as income for purposes of the Means Test.? If you are talking about an on-going monthly stipend to help defray the cost of caring for the adopted child(ren), then that is presumptive income. If you are talking about a one-time reimbursement of the a special expenses involved in the legal process of adopting a child, that is probably not income. Examples of this would be lawyer fees, the cost of a home study by a social worker, or a physical/mental exam required by the court before the adoption is approved. Adoption subsidies come from different sources and are handed out on different basis. If the money is coming from the government and is part of the Social Security Act, then that is income but it is not considered for purposes of the means test. If it comes from either a private charity or from the government and is handed out based on how much property and income you have, that is, if the money is means tested, then it is probably public assistance and it does not count. You must still report it, but it does not count. So the reason you are not getting a clear answer is probably because the lawyers involved don't know enough about adoption assistance to help you.
Answer Applies to: California
Law Office of D.L. Drain, P.A. | Diane L. Drain
Any money received is "income" for the purposes of the bankruptcy. Please understand that filing for bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.
Answer Applies to: Arizona
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
You have to list the subsidy as income received for purposes of the means test.
Answer Applies to: Indiana
Dan Wilson Bankruptcy | Dan Wilson
Very tricky question. It depends a lot on wht trustee you draw. If I had the case I would list it as income and then back out the extra expense involved. Extra medical expenses, counseling, therapy, etc. It should be a wash.
Answer Applies to: Colorado
Weber & Phillips, P.A. | John G. Phillips
Please remember that there is a difference between income as defined by the IRS and income as defined by bankruptcy law. If you were my client and you are entitled to receive that money, then I would list that as income. I do understand how other attorneys can differ, but I believe it would be income for bankruptcy purposes.
Answer Applies to: Arkansas