Any pointers for putting a budget together?

[COrnguy]

I'm guessing I'll be qualifying for a Chapter 13 BK. Supposed to put together some sort of realisitic budget for monthly expenses. Just what qualifies for disposable income? Say, I budget $400 for groceries and end up spending $300, who gets that difference of $100? Same with the other basics such as clothing, medical, home repair, gasoline, ect.

I take it that descretionary money is that used for entertainment, dining out. Please explain..... do I need to learn to like bologna and fish heads?

What about savings, is some allowed? How about the company 401K program. Been out of it for several years now. Should I hurry up and re-enroll?

Lots of questions...... thanks! All suggestions/comments are greatly appreciated.

[CindyLou]

when i filed my chpt 7 I was allowed to keep my 401k in my expense because I had been putting money in for the entire previous year. That was the one thing the trustee mentioned at my 341. She said it would be allowed because it wasn't new.

[lrprn]

Your Ch 13 living expenses are NOT what you've actually been spending - it's how much you would reasonably spend for normal expenses like the ones listed here - http://www.ca-bankruptcy-attorneys.c...alculator.html

When you file Ch 13, whatever expenses you give your lawyer are the expenses he/she uses to calculate the Means Test. If you've been doing without clothes, medical care, etc, it isn't realistic to expect that you can continue to do that for years in Ch 13. That's why having a good lawyer who understands what your bankruptcy trustee will accept in all the different categories of expenses is a god-send.

Once your monthly Ch 13 payment is confirmed, then that's what you pay every month unless you have a drastic change in your income or your expenses. Most Ch 13 lawyers will tell you that any money you save by scrimping and doing without after your case is filed is yours to keep.

Some of your expenses are mandated by the bk law - housing, utilities, etc. Rather than going on and on here explaining how Ch 13 works, here are some excellent websites that will make it easier for you to understand how it works:

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter13.html

http://www.abanet.org/publiced/practical/bankruptcy13_whatis.html

http://moranlaw.net/13workings.htm#Chapter%2013%20practice

After reading up on Ch 13, come back and keep on asking questions. We'll help you as much as we can.

And about retirement....if you sign up for retirement now and aren't going to file for 90 days, you should be fine (but check it with your lawyer to be sure). This is a good thing to do since it will reduce your disposable income plus give you a protected asset that your trustee and your creditors can't touch after you file.

[Granny]

Are you talking about a budget for real life or a budget for a Chapter 13 Schedule J. Your attorney will guide you on the Schedule J but you do need to give him something to start with. Start with the IRS standards and go from there.