Actual expenses lower than 'national standards'

[katztoo]

Our lawyer upped our expenses with food, clothing (don't buy it much), gas, education (kids school supplies) and home maintenance. He used the highest figure allowable so it gave us some wiggle room since we don't spend as much money monthly on these categories.

[keepsmiling]

Buy the car and get health insurance, should get you into a 7. 401K payments come out too. You CAN make this work!!!!
Go see someone in person - 3 minimum. You'll feel MUCH better!

[Pizza]

Our lawyer upped our expenses with food, clothing (don't buy it much), gas, education (kids school supplies) and home maintenance. He used the highest figure allowable so it gave us some wiggle room since we don't spend as much money monthly on these categories.

How was he able to do this? Did it just go unquestioned?

[Pizza]

Buy the car and get health insurance, should get you into a 7. 401K payments come out too. You CAN make this work!!!!
Go see someone in person - 3 minimum. You'll feel MUCH better!

Working on it

I like to look at things worst case and dispel everything backwards.

[LadyInTheRed]

How was he able to do this? Did it just go unquestioned?

Before filing BK, you are struggling to keep up on debt payments, so you spend less on living expenses than you otherwise would. You buy cheap food that may be less healthy, filling up on white rice and white bread for example, instead of whole grains and fruit and vegetables. You delay buying clothes and put off needed home repairs so that you can make those monthly credit card paymens. You are not exptected to keep that up during your Chap 13. Schedule J is forward looking and can include reasonable expenses that may exceed what you are spending before filing.

[berkeleygl]

Listen to catleg! We are also just hovering on the median line, but had to file a chapter 13 because of our tax debt. Our schedule J basically just used the IRS allowances except where major things in our life dictated otherwise (we have a special needs son whose medical care costs way more than "allowed"...the trustee never questioned this). So long as you are reasonable they won't question it. Trust me, nobody has the time to go combing through your financial records to "prove" that you spend $87/month on clothing averaged over a year! Give it your best guess, err towards the national standards, and you will be fine. We just got confirmed today -woot!

[spidge]

Please excuse me in that I did not read all the responses here.

I do not know how big a hurry you are in to file, but if you could is there a chance that you could reduce your income in the next six months? Could you increase your expenses to represent the national or regional averages?

I ask this because we reset the six month look back clock three times before finally telling the attorney to go. We to lived well below the national average on many items and I was determined not to live piss poor. We are now in the second year of our 13 and live more comfortably than we have in many years. Not great but good.

Please before filing consider where you are and where you want to be, and also how you want to get there. Only you know the best way even though your attorney thinks they do.

[katztoo]

How was he able to do this? Did it just go unquestioned?

Yes. He just used the maximums for our family size in all these areas. We only buy clothes when we need them, fix the house when necessary, use sales and coupons on food ect. We don't spend near the limits but were allowed these amounts. This gives us about $500 left each month after bills and the (high) payment t0 the trustee.