As I have explained to clients many times before, there is sort of a hierarchy in bankruptcy. Your minor children come first, your creditors come second, and your adult kids come third. If you have been supporting an adult child, for instance by paying their college tuition or rent, etc., and then file bankruptcy within one year of making those payments, it is possible that your chapter 7 bankruptcy trustee could try to recover the money from your adult child. However, while kids go to college to better themselves financially in the long-term, they are usually not worth trying to pursue for a trustee, who is just looking for the quick and easy money.

There appears to be an emerging trend, as set forth in this Wall Street Journal article, whereby trustees are now trying to claw back money from the school where the parent paid the tuition. Some schools are paying off, and it is possible that notwithstanding the bankruptcy filing, the school may then be able to come back after either the student or the debtor, although that is undeveloped in law. This has not happened to me or any of my colleagues, although it does refer to a case in MN.