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tuition prepayments consumer bankruptcy
What will happen to tuition prepayments for my children?
Many states have established plans that allow parents to prepay college tuition for their children. You should contact an attorney in your own state for advice about whether funds you pay under such a plan are beyond the reach of your creditors. As a general rule, if you have the ability to revoke any sort of trust arrangement or to direct payment to yourself, your creditors can reach it. Even though these plans generally get favorable tax treatment despite revocability options, their treatment in bankruptcy is open to question.
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