my 341 today--there was a problem

[michele71]

Ok so I need some info--I had it out with my lawyer so I can't ask him lol--long story. So at the 341 the rep for trustee questioned our spending 900/mo on food (house of 3) and 540/month on vehicle expenses (8 oil changes a year for 2 cars plus gas and upkeep) and 150/mo. I dont have any receipts--I mean I can get them starting now but my confirmation is to be on 2/11. What do I do? If I can't give them proof before then?? do they dismiss, say its abuse?? or do they adjust my payment to the IRS allowed standard even though it was a Sch J? I am lost hope you guys can help me. I have no receipts I asked when I filed if I needed them and was told no.

[liz417]

Could you possibly use your bank statements to show that you pay out the extra $$ for car expenses and/or food expenses? Or maybe you could go to your mechanic and get records of your visits. What does your attorney suggest?

[michele71]

liz--I provided my bank statements to the court they didn't check em out I dont guess..lol. My attorney is being a male body part...I am lost. I wonder if my confirmation will just be put off until I can provide a few months of receipts as proof. I have no I dea whts gonna happen. I use cash alot for food so I am really confused right now. I hope this isnt grounds for dismissal.

[optimistic1]

From what I understand, the IRS guidelines are the norm, which you probably already knew that, and if you exceed them, you need to have receipts or other proof to justify it.

But there may be some other things that you can do, Im sure others will chime in with better ideas.

Good luck to you.

[michele71]

So do you think that if I cant get enough proof together before confirmation that they will just lower the amounts to the standards or will they postpone confirmation??

[rrockinggramma]

your attorney and you will have to go over the expenses in question and adjust them and then resubmit for trustee approval. It will be a paperwork process and yes it could hold up your confirmation.

[Flamingo]

I can tell you right now that $900 a month for a family of three is on the high side. We are a family of three and were when we filed back in 2002 and that time I believe we listed $500 or less because we just eliminated going out to eat. I can see why there is an issue as to that amount. Also your $540 per month for vehicle upkeep and gas is also on the high side unless you can prove you drive long distances. Also you can do your own oil changes and save a bundle. Without receipts you will have a tough time getting those amounts through.

[optimistic1]

You might be able to adjust them around a bit, although there are not too many different allowances, they bundle them all together. Not sure if the Trustee would easily pick up on it or not.

I doubt they would dismiss it, tell your lawyer to get his act together or you will fire him.

Just kidding.

[atolar]

family of 6 here and they budgeted freakin $600 for us.

good luck.

[woeisme]

Either you need to do the IRS standards (or less) or you have to show receipts AND explain why your expenses are so much higher than standard. We were able to get higher gas allowance due to my husband's commute, and higher medical due to a chronic health conditions, but absolutely had to verify both these facts to the trustee. Sorry your lawyer mislead you saying you didn't need receipts, but in a BK, all spending needs verification especially if you want preferential treatment (above standard allowances). Don't know if your lawyer will be able to stall them long enough for you to get your receipts together or not, something you need to be asking the male body part, lol.

[wealth2009]

Expenses too high????

You might want to lower your expenses, esp the discretionary line items. Because you can always increase them, after the plan has been confirmed. For all of your necessary expenses, you should have utility statements, mortgage statements/rental receipts, tax statements, all of your insurance statements/receipts, etc. It's those expenses (i.e., clothing, gas, entertainment, groceries, grooming the pets, maintenance repairs, etc.). Just don't list them so high as an expense on the J schedule It seems you are making this process more complicated than necessary. You might ask me how I know, it's because this is my 8th BK in approx. 20 years.

I was nervous like a lot of you who write in this forum, when it all began for me 20 years ago. Please don't think I'm proud of my actions, oh, by all means, I am very much embarrassed by the way I have failed to learn from my past. But, this time for me its all over, I have no more to give in this way. I hope my experiences will be transformed into opportunities to share with others and offer some hope, if not advice around how to navigate the BK system. It can be very scary at times, esp when your attorney tells you to give up your home or automobile and walk away. Walk away to what, where, why????? Especially, when you have a family like me and no place to go, no $$$, no credit and no sense of direction.

[Removed Solicitation]