Monthly Expenses

[CaseyKnox]

I have finally scheduled a meeting with the BK Attorney, and I'm listing all my expenses.

Just curious, do they take into consideration that expenses may fluctuate during your plan, like your utilities for instance.

What if I forget to list an expense, and do not realize it, until after I've filed?

Should I "cushion" my monthly expenses, just to be safe?

Thanks in advance!

[dmc-2008]

I would average out you expenses to get a reasonable number.

Try really hard not to forget any. My problem has been new expenses, so I just cut back in other areas. Food and enterainment are always cut first! Good luck!

[CaseyKnox]

I would average out you expenses to get a reasonable number.

Try really hard not to forget any. My problem has been new expenses, so I just cut back in other areas. Food and enterainment are always cut first! Good luck!

Thank you. What happens if I have $0 disposable income? I know the attorney will answer all these questions, but I'm eager to learn lol

[justbroke]

I initially made the mistake of using "current' electric bills -- albeit I used three -- to average my electric bill. That's just totally wrong in Florida. I instead took the actual amounts from the past 12 months and divided by 12 to have the true average. The thing with this, however, is that you need to SAVE the difference in the months where the bill is lower so you're not stuck with high bills that you can't afford in the summer (in my Florida example).

As for having $0 in disposable income, the attorney will talk to you about that. In some Districts, the Trustee will wonder why you have $0 plan and are not in a Chapter 7. In other Districts, they may want you to pay some token amount to the unsecured. Yet in others, they don't care at all so long as "something" is being paid "through" the Plan (through the Trustee).

[CaseyKnox]

I initially made the mistake of using "current' electric bills -- albeit I used three -- to average my electric bill. That's just totally wrong in Florida. I instead took the actual amounts from the past 12 months and divided by 12 to have the true average. The thing with this, however, is that you need to SAVE the difference in the months where the bill is lower so you're not stuck with high bills that you can't afford in the summer (in my Florida example).

As for having $0 in disposable income, the attorney will talk to you about that. In some Districts, the Trustee will wonder why you have $0 plan and are not in a Chapter 7. In other Districts, they may want you to pay some token amount to the unsecured. Yet in others, they don't care at all so long as "something" is being paid "through" the Plan (through the Trustee).

Thank you!! I never thought to average all 12 months!! Thanks for your input!

[LadyInTheRed]

Another thing to think about with expenses is that before filing BK, we often are cutting corners where ever can to below what is considered a reasonable expense. Schedule J is supposed to be forward looking. For example, if you have been eating ramen for dinner so you can pay your creditors, you should consider increasing your food expenses to an amount that will allow a more nutritious diet. If you haven't bought any clothing for the past 2 years because you couldn't afford it, add clothing as an expense. Do let your attorney know that you are doing that.

[CaseyKnox]

Another thing to think about with expenses is that before filing BK, we often are cutting corners where ever can to below what is considered a reasonable expense. Schedule J is supposed to be forward looking. For example, if you have eating ramen for dinner so you can pay your creditors, you should consider increasing your food expenses to an amount that will allow a more nutritious diet. If you haven't bought any clothing for the past 2 years because you couldn't afford it, add clothing as an expense. Do let your attorney know that you are doing that.

LadyInTheRed Thank you!!