Ch 13 Allowances help

[Bomsaway]

After meeting with my attorney and retaining his services, I am at the point where I am itemizing all of my monthly expenses and getting together my paperwork. It dawns on me that this step is of HUGE importance if I want to walk away from this with a "budget" that is liveable. Like many others, I am filing ch 13 because I make too much money to do a ch 7...I don't have a house or too many assets to protect...and I would like to survive this in a workable manner. I am seeing things like limits on rent ($870 in my state) which are under what I am paying ($1075).

Can anyone provide smart advice on types of expenses that they used to offset their payment and create a budget that didn't leave them strapped at the end of every month? I saw one poster who noted that you can list "entertainment" as an expense...anyone done this or similar things that may help?

[liz417]

Just because you are over the median doesn't disqualify you from filing a ch 7. Did you consult with a few attorneys before retaining this one? I believed that I only qualified for a ch 13 (according to my 1st attorney), I found this board and realized that isn't really the case...it's all about the numbers/expenses. Have you gone to www.legalconsumer.com and plugged your numbers in there?
Before I hired my next attorney, I consulted with 6 more...most took one look at my income and immediately told me "CH 13"...I continued my search...and just filed for a ch 7 on May 28th...

Good Luck!

[optimistic1]

If you are over the median income, you are entitled to use the means test to determine what your disposable income is.

With that in mind, you are entitled to the standards set forth by the IRS for expenses.

Where do you live?

[justbroke]

The problem with being an over-the-median income debtor, is this. Without having significant expenditures on secured assets, it is almost impossible for that debtor to qualify for a Chapter 7. This is by design.

You may have some other significant expenses that are allowed that could get you qualified for a Chapter 7, but I haven't seen this too often.

It is, as liz wrote, all about the expenses.

[ando]

Can you file chapter 7 without loosing your house to creditors? assuming you do have some equity on it?

[justbroke]

Can you file chapter 7 without loosing your house to creditors? assuming you do have some equity on it?

Absolutely yes. In most States, there is a pretty good homestead exemption which covers the equity. These exemptions seem to run from about $75,000 to unlimited (Florida). The average is probably about $100K.

So you can file Chapter 7 and keep your house.

[lrprn]

Can you file chapter 7 without loosing your house to creditors? assuming you do have some equity on it?

As JustBroke already said, you can file Ch 7 and not lose your home. There are two conditions though - 1. The equity you have in the home is protected by your state's bankruptcy homestead exemption *AND* 2. Your house payments are up to date on filing day.

Can you meet both conditions?