College Funds and Bankruptcy
With the cost of college tuition rising at an alarming rate, many parents understand the value of saving money for their child's college tuition and expenses. College costs can be very expensive, from tuition and class fees to room and board, parents often attempt to put money aside to make sure they have sufficient funds to help their children make the transition from high school to college.
Many parents wisely start saving for their child's future education early, so that they may have significant funds saved before the student graduates high school. Many choose to set up separate savings accounts, mutual funds, or other accounts to accumulate the money needed to pay for school when the time comes. Unfortunately, financial crisis may strike a family, whether it be job losses, divorce, death of a spouse, or other serious life events. The child's guardian may choose to use funds from the savings accounts to pay for necessary bills, or may decide to file for bankruptcy to provide relief from mounting financial obligations.
Bankruptcy Attorney Fees, Utah Bankruptcy Lawyer, New York Bankruptcy Lawyer,
While bankruptcy may be the best option for individuals who find themselves unable to repay their creditors and have no other options for regaining positive financial standing, college funds and other savings accounts reserved for children may not be exempt from bankruptcy proceedings. When a person files for Chapter 7 or Chapter 13 bankruptcy, he or she is required to list any and all assets, finances, and cash reserves that he or she has control of.
Many college funds are managed by the student's parents for safe keeping until the minor becomes an adult. In the event of bankruptcy, the funds may be liquidated to repay creditors or may be included in the bankruptcy proceedings, unless properly protected by law. Parents who wish to keep their child's college savings separate from bankruptcy plans should place the money in secure accounts that cannot be included by the court.
By placing money in a 529 College Savings plan or placing money in an account under the Uniform Gift to Minors Act or the Uniform Transfers to Minors Act can help protect college funds from creditors. Accounts set up in this manner usually allow the parent or guardian to manage the account in the child's name until the child turns 18. They are usually exempt from bankruptcy action because the guardian is allowed to put money into the account, but cannot remove it for personal use.
If you would like to know more about bankruptcy proceedings and your assets, visit the website of the Boston bankruptcy attorneys of Joshua Spirn & Associates.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Lawyer NYC
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment