What is reasonable for a budget?

[Ifonly]

I'm in the process of completing my paperwork and should be dropping them off with my attorney within a few days.

I am so stuck on what to put down on my budget for certain items such as food. I know people who spend $400 a week on food (I live in the NE). I myself can spend anywhere between $700 and $1,000 a month. Is it crazy to put down $1,200 and see what happens? This includes cleaning supplies, toiletries, the whole shebang.

I have no problem budgeting but I'm terrified of having such a tight budget that I literally can't buy food for my children.

Thoughts?

[JoeBankrupt33]

It probably won't be questioned at all if there are 5 people. It's tough to say, though, since I'm in CO. Hopefully, your lawyer should know how much expense will be acceptable.

[catleg]

I think it might work out better if you broke out cleaning supplies, laundry supplies, dry cleaning, toiletries, groceries into separate categories. Many smaller details is better than big unidentified buckets.

[getmeouttahere]

When we filled out our paperwork a couple months ago, we put $1000 a month for food for a family of 5. At the 341 the trustee questioned this expense and asked if we had any dietary problems. When the meeting was over, our attorney told us the trustee will probably object to this amount (which they did, since she brought it up). She asked if we had receipts, which we did. I told her, I shop at Meijer (one-stop shopping with everything under one roof) and that amount included everything from dog food, toilet paper, school supplies, shampoo, laundry detergent, and food.

Sooo, what she suggested we do, was to go through all the recipts and categorize what we spent (food, pets, household supplies, toiletries, etc.).

Keep in mind that food includes your weekly grocery (food) shopping, dining out, school lunches, Girl scout cookies, etc.

I hope this helps. Good Luck!

[JoeBankrupt33]

Holy cow. I never imagined a trustee questioning 1000 for 5 people.

[Ifonly]

getmeouttahere - Where do you live? I would hope that makes a difference. You couldn't feed a family of 5 on $1,000/monthly anywhere in the tri-state area.

[getmeouttahere]

We are in Michigan. Our attorney told us it is the trustee's job to object, but as long as we could prove the expense, it would probably be fine. So, if you feel you cannot feed your family for less than $1000/1200 a month, then I would suggest you put that amount on your expense sheet and wait to see if the trustee objects. You might be fine. Every trustee is different.

As for us, I absolutely have no problem staying within our budget and we are not starving. My kids are good eaters, and still get to enjoy their goodies (cookies, ice cream, chips) and hubby his case of beer. The only problem I face now, is that I need to convince my teenage son that he doesn't need to eat an entire box of cereal in one sitting - yikes!

[EricaCallaha]

We had $1K put as our food expense for a family of 5 including my little one in diapers. Never batted an eye at that. We don't spend anywhere near that a month...but if you have a good attorney, they know where to pad your budget so you can save a little.

Good luck.

[woeisme]

Our schedule has $650 for food and supplies for a family of 3. I think the lawyer took it straight from the IRS allowances. You should check those out to get a ballpark idea of what is easily defensible and what is going to raise red flags with the trustee.

[woeisme]

Went ahead and looked it up for you. Here is what I got from the IRS site.

Collection Financial Standards for Food, Clothing and Other Items

Expense One Two Three Four
Food $277 $528 $626 $752
supplies $28 $60 $61 $74
Apparel $85 $155 $209 $244
care prod $30 $53 $58 $65
Misc. $87 $165 $197 $235
Total $507 $961 $1,151 $1,370


More than four persons Additional Amount Per Person
For each additional person, add to four-person total allowance: $262


PS- sorry it looks crammed up, looks fine when I type it, crams up when I post...

You can also look to see if your trustee has anything listed on their website specific to what they allow. Some areas might allow more (expensive cost of living areas) and since my lawyer put in less than what the IRS says, I assume our trustee allows less (low cost of living area of the Midwest).

[DUMBAGAIN]

is that what the court follows the IRS allowances?

[spearmint]

Went ahead and looked it up for you. Here is what I got from the IRS site.

Collection Financial Standards for Food, Clothing and Other Items

Expense One Two Three Four
Food $277 $528 $626 $752
supplies $28 $60 $61 $74
Apparel $85 $155 $209 $244
care prod $30 $53 $58 $65
Misc. $87 $165 $197 $235
Total $507 $961 $1,151 $1,370


More than four persons Additional Amount Per Person
For each additional person, add to four-person total allowance: $262


PS- sorry it looks crammed up, looks fine when I type it, crams up when I post...

You can also look to see if your trustee has anything listed on their website specific to what they allow. Some areas might allow more (expensive cost of living areas) and since my lawyer put in less than what the IRS says, I assume our trustee allows less (low cost of living area of the Midwest).

Re food, there's a huge difference between one and two people and should not be. Not enough for one, plenty for two.

[HHM]

Yep, your starting point for those items would be the IRS Standards

http://www.irs.gov/businesses/small/article/0,,id=104627,00.html

An interesting report by the USDA outlines food costs as well.

http://www.cnpp.usda.gov/Publications/FoodPlans/2009/CostofFoodJan09.pdf

[Mi Bankruptcy]

I have a family of 5 and am in the tri county
$100.00 water & Sewer
$270.00 Utilities
$100.00 telephone
$300.00 food
$100.00 Clothing
$100.00 Home maintence
$60.00 Internet
$30.00 laundry
$500.00 transportation ( When gas was $4.00)
$145.00 Auto insurance
$125.00 Recreation
$160.00 for other: hygiene($50) Car Repair($30) Diapers($40) Pets($40)

Now.. this made me almost -600.00 So... no chapter 13

[spidge]

I went to the means test to get the federal figures and was astonished to see that a family of 4 like mine is allowed $1370.00 for household food and supplies. All in one big bucket. In my budget submitted to the lawyer I put down $700 and felt it was low balling. So I will submit a new budget based on the federal guidelines for my zip code.
http://www.legalconsumer.com/bankrup...test/index.php

Brings my estimated payment down to 1/4th of the original estimate.