Going to talk to a lawyer on Monday, budget?

[pilkerton21]

My boyfriend is just starting the process of thinking of filing a chapter 13 (can't file a chapter 7 because it hasn't been 8 years since he last filed a chapter 7). I don't know enough about chapter 13, so I am taking his cc's and secured debt information to the lawyer on Monday to see what he says. Here is his budget, do you think it's enough DMI to file?

Pay Date Gross Net
4/9/2010 - $1,473.23, $1,137.81
4/23/2010 - $1,476.37, $1,140.08
4/30/2010 - $518.70, $463.84 quarterly bonus
5/7/2010 - $1,473.97, $1,138.36
5/21/2010 - $1,494.88, $1,153.34
6/4/2010 - $1,446.01, $1,118.34
6/18/2010 - $1,925.47, $1,461.64
7/2/2010 - $1,577.30, $1,212.34
7/16/2010 - $1,851.25, $1,408.49
7/23/2010 - $658.63, $573.10 quarterly bonus
7/30/2010 - $1,326.25, $1,032.59
8/13/2010 - $1,832.85, $1,395.31
8/27/2010 - $1,597.94, $1,227.12
9/10/2010 - $1,722.30, $1,316.16
9/24/2010 - $1,620.97, $1,243.61
10/8/2010 - $1,473.63, $841.88 Garnishment began
10/22/2010 - $533.97, $435.00 quarterly bonus
10/22/2010 - $1,508.16, $860.41
11/5/2010 - $1,473.61, $841.87

Insurance (health, vision, dental) $46.85/pay period

Monthly Gross* Monthly Net* **
$3,644.55 $2,837.02


Monthly Bills
Car $184.00 Paid off in Feb 2011
Motorcycle $232.00 2 months behind
Rent $363.00
Groceries/
diapers/formula $350.00
Car/Bike Insurance $103.00
Daycare $205.00
Electric $75.00
Water $30.00
Gas $250.00
Alimony $600.00
Rx $30.00
Satelite $25.00
Cell phone $65.00
Monthly Totals $2,512.00

Left over monthly $325.02

*Includes quarterly bonus
**Before Garnishment

[LadyInTheRed]

Hopefully others will comment on the numbers.

Why doesn't your boyfriend go see an attorney? You aren't likely to be able to get much info on his behalf. He really needs to do this for himself.

[momofthree]

His income is actually a bit over $3000/mo since he's paid bi-weekly. The garnishment will stop once he files so the full pay will be used in the calculation. He can file, definitely.

Is he claiming household of 1 or 2? You list baby expenses, yet he pays alimony so not sure who has custody and how that would work. If he can claim his baby as a household member, it would help him out in keeping his numbers low. He needs a clothing expense, and probably a higher medical expense. If he's claiming a household of 2, he can claim more in the food section. He probably won't be able to keep both the car & the motorcycle though since they both have payments on them. The trustee will most likely see that extra payment as money that can go towards his unsecured debt.

Good luck with the attorney meeting. Keep us posted.

[pilkerton21]

Sorry for the confusion, he and I are both going to see the lawyer on Monday.

To answer some questions:

He pays alimony to his ex and we have a 3 month old baby together.

The car will be paid off in February, so that payment will be gone then. Will he still have to get rid of the motorcycle if it is only one payment then? What if he can't sell it for what he owes?

Can anyone tell me what to expect with our visit to the lawyer on Monday and what we will need to bring?

[Pandora]

Some questions not asked:

do you live with your boyfriend and if so, is your income counted in the above?

Missing expenses in addition to what Momofthree pointed out: vehicle maintenance, any life insurance payments, renters insurance, health insurance deductibles, pets, entertainment, etc etc etc.

ETA: any non-exempt items? (equity in car - VA only allows $2K exemption)

[pilkerton21]

We do live together, but my income is not listed above. The numbers listed above are 1/2 the rent, groceries, utilities and daycare as I pay the other 1/2. The only exceptions to that are he pays 100% for his car, motorcycle and insurance.

We do not have life insurance, renters insurance or pets.

I guess we need to list some for vehicle maintenance and entertainment, but we don't get entertainment anymore lol. Are we trying to get as close to $0 as possible? I thought if we showed a low amount then he couldn't file.

[Pandora]

Are we trying to get as close to $0 as possible? I thought if we showed a low amount then he couldn't file.

You're trying to get as low as possible for your CH. 13 payment, but ensure you have enough to fund whatever your plan turns out to be if there are any secured and priority debts, non-exempt assets, legal fees, trustee fees,- and whatever unsecured creditors would receive.

[pilkerton21]

You're trying to get as low as possible for your CH. 13 payment, but ensure you have enough to fund whatever your plan turns out to be if there are any secured and priority debts, non-exempt assets, legal fees, trustee fees,- and whatever unsecured creditors would receive.

Thanks. The only secure debt I can see is possibly the motorcycle and the rest is unsecured. What are non exempt assets and what is considered a priority debt?

[LadyInTheRed]

Can anyone tell me what to expect with our visit to the lawyer on Monday and what we will need to bring?

For an initial consult, bring at least your boyfriend's last paystub. Paystubs for the last 6 months would be better. Bring the info you posted here. You may also want to bring your own income information. I'm not certain, but I think your boyfriend's petition will show a household of 3, list 100% of the household expenses and then your contribution to those expenses.

I posted a spreadsheet in my blog that I filled out and emailed to attorneys before I met with them for initial consultations. That really helped them give me specific information. Others have said that attorneys hardly looked at the info they brought with them.

The attorney will ask questions about your boyfriends finances and may have him fill out a questionnaire. They will explain the BK process and say whether they think he qualifies for a 13 and may even estimate what his payment would be. They will answer whatever questions you have (or at least should). They will explain their fee and give you a list of documents they need if you decide to retain them. Depending on the attorney, the meeting can last anywhere from 15 minutes to 2 hours if the attorney is really generous with his/her time. It'll probably be between 30 mins and an hour.

Try to meet with at least 3 attorneys to find one you are both comfortable with.

ETA: Exemptions are lists of property that a debtor can keep in a Chap 7 BK, but they also apply to a Chap 13. In a Chap 13, you can keep all of your property, but if you have anything that is not exempt, you have to pay at least the value of the non exempt portion of the asset to unsecured creditors during the Chap 13 plan. Each state has it's own exemptions and some states allow you to choose between federal and state exemptions. Google "Virginia Bankruptcy Exemptions" to find the exemptions for VA. Not all website are up-to-date, so make sure the one you look at says when it was updated.

[pilkerton21]

Does it change anything if I have 3 older children that are not my BFs? I share 50/50 custody with my ex, so they are in the household 50% of the time. I will bring my financial information just in case.

I want to be prepared as possible to get the ball rolling.

[pilkerton21]

Ok, change of plans. It looks like we won't be filing until February sometime. By then the car should be paid off and the motorcycle will more than likly be given back and/or repo'd. I guess we'll need to wait to see what he will end up owing on the bike before we can file, right? Or can it be amended in when we know?

Lawyer said we will defenitly be a famiy of 3, possibly 4 because of the above post. Where can I find budget amounts for family size? I think we need to add in vehicle maintenance, clothing, and up the food budget a little.

[momofthree]

IRS standards: http://www.justice.gov/ust/eo/bapcpa...anstesting.htm

[tammygirl1]

I am sure it depends on district/trustee but we were able to claim my husband's children within the plan since we still have to provide for them (48% time) while they are in our house. I was worried that since we don't claim them on our taxes that our trustee would have issues but my lawyer assured me we should be able to include them and we were able to! Yeah. It sure helps to be family of 5 rather than 3...
Good luck to you in Feb.