CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

How Does Claiming Bankruptcy in Florida Affect Your Children?

claiming bankruptcy in floridaClaiming Bankruptcy in Florida

Understanding how claiming bankruptcy in Florida affects your children is an important part of determining whether or not you should file. Even with serious financial concerns, you don’t want to do anything that will harm your children now or in the future. This is especially true if you’ve set aside money for your children to attend school or for other reasons.

How will filing for bankruptcy affect your children?

Savings Accounts

Many parents set up savings accounts for their kids when they are very young. This way they can slowly build savings for your child. And once they’re old enough, they can add to their savings and learn about money management.

But what happens to the money in that account if you claim bankruptcy in Florida? Is your child punished because you saved on his or her behalf?

According to the Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act, any money you’ve put into an account or your child is not part of a bankruptcy estate if you file. Once in the account, the money is the property of your child. The account is protected from the bankruptcy trustee if you choose to file for bankruptcy.

You can learn more about these laws here.

College Savings

Setting up a college savings plan for your child is a smart move. Tuition continues to get more and more expensive and saving throughout your child’s life can reduce the amount they’ll need to borrow once it’s time to attend college.

One of the most popular options is a section 529 college savings plan. These not only allow you to put aside money, but they also offer tax benefits for you. They’re also protected from bankruptcy trustees should you choose to file.

The important thing to remember when you begin a savings plan to help your child pay for college is that the account must be set up properly. The beneficiary on the account must be your child (or your grandchild or stepchild).

It’s also important that you begin making deposits long before you file for bankruptcy. This prevents people who intend to file for bankruptcy from withholding money from the bankruptcy estate under their child’s name. Any deposits made within a year are at risk of being confiscated by the bankruptcy trustee. There’s even a chance deposits made up to two years could be confiscated if you’re claiming bankruptcy in Florida.

Personal Property

Property in your home is considered your property, even if your family considers it your child’s property. This means if you bought a flat-screen TV or other expensive electronics for your child and they’re the only one who uses it, the bankruptcy trustee could still confiscate it. The only way to avoid confiscation is to prove to the bankruptcy trustee that your child used his or her own money to make the purchase. The best way to avoid a problem is to save a paper trail if your child buys any expensive items with his or her own money.

The good news is bankruptcy trustees rarely confiscate household items. Some things can even be protected through exemptions. Your attorney will explain how to protect as much property as possible when you file for bankruptcy.

If you’d like to know more about how claiming bankruptcy in Florida might affect your children, contact the Law Office of Robert M. Geller at 813-254-5696 to schedule a free consultation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Tips for Rebuilding Your Credit after Bankruptcy

One of the primary goals after filing for bankruptcy is rebuilding your credit. As tempting as it might be to...
Read More

I’m Starting a New Life and I want a Financial Fresh Start – Should I File for Bankruptcy Now or Wait?

As the say goes, “when it rains it pours.” If you’ve found yourself experiencing financial difficulties while also dealing with...
Read More

What Does It Mean to Get a “Financial Fresh Start” in Bankruptcy?

Financial Fresh Start You’ve probably heard it before. “Bankruptcy gives you a financial fresh start.” It’s something stated on this...
Read More

Tips for Overcoming the Negative Emotions of Bankruptcy: How Can an Attorney Help Me with My Finances?

As advantageous as bankruptcy is when you are struggling financially, it’s still a stressful experience. Some people have a tough...
Read More

Why Bankruptcy Attorney Help Guarantees the Outcome You Want

Bankruptcy can be a blessing, but it’s also a complicated process. Bankruptcy attorney help means you'll understand the complexities of...
Read More

Can I Get a Mortgage After Bankruptcy? How Bankruptcy Attorney Help Leads to a Hopeful Future as a Homeowner

Securing a loan is one of the biggest challenges faced by someone after filing for bankruptcy. But this doesn’t mean...
Read More

How Does Claiming Bankruptcy in Florida Affect Your Children?

Claiming Bankruptcy in Florida Understanding how claiming bankruptcy in Florida affects your children is an important part of determining whether...
Read More

Claiming Bankruptcy in Florida: What Happens When You File for Bankruptcy and Your Spouse Does Not?

Claiming Bankruptcy in Florida You already know how much the things you do affect your spouse when you are married....
Read More

Should You Pay Back What You Owe Loved Ones Before You File for Bankruptcy?

Florida Bankruptcy Laws It’s common for people who are struggling financially to turn to their friends and family for help....
Read More

Bankruptcy and Family Law: Does Filing Affect the Child Support I Pay or Receive?

Bankruptcy and Family Law If you’re like many people, the well-being of your children is your most important priority. Struggling...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions