Budget for Chapter 13

[mwr1ght2002]

Hello, I was just wondering is it normal for the attorney to create your budget for the chapter 13? I went to drop off all my paperwork today (I meet with him tomorrow to sign papers) I inquired about creating my budget. The secretary said the attorney will do that and review it with you when you come in to sign. I had the impression I would create it or we would create a budget together. I am curious as to the experience of others. Thank you in advance!!

[kornellred]

It is quite possible that your attorney may be aware of more efficient ways of using the money you will have left after your disposable monthly income has been determined. He or she will definitely not dictate to you how your non-discretionary funds should be spent. "Budgets" are not enforceable - they are just reasonable suggestions that will help a debtor get through a Chapter 13 bankruptcy plan.

[mwr1ght2002]

Ok, thank you for your fast response. This whole process just worries me. : )

[mwr1ght2002]

Well I officially filed Chapter. 13 on Friday!! My attorney did the budget so I paid close attention to everything when I signed paperwork!! Good thing I did because there were more than a few underfunded like car insurance, gas, health insurance!! I made him work today! In the end we got it squared away! His clerk wasn't too happy with me but oh well! He should have consulted with me on this! ; )

[spidge]

I am not sure what some attorneys do, but mine took my numbers and compared to the norms. They still managed to make a few errors like doubling my taxes owed the IRS in the claims, but that was an easy fix. Of course the assistant did not like me insisting to speak to the attorney to get it straight, but the attorney glanced at it and said it was obvious and to fix it.
A friend had to hold every proof of expense for a time before his attorney would attempt a budget. So it looks like they are all over the board like so many other topics in BK.

Don't get to excited but be sure to have proof if you expect the attorney to change anything. They do work for you.

[mwr1ght2002]

Oh I have the proof of expenses! I save all my receipts for gas..I commute to work. I of course have proof health insurance cost and car insurance cost! My plan is 100% so it shouldn't be too much of a issue. I just think we should have done the budget together! : )

[spidge]

So if you know your a 100% plan then you can estimate the payment minus the trustee administrative fees and such. Why would the budget matter if you know your 100%? Are you hoping to bring the percentage down some? Not that it matters as disposable income is disposable income.

[mwr1ght2002]

Well originally I was not going to be 100%! By going 100 I will be able to keep my second vehicle rather than giving it up ! I commute to work 78 miles one way! I was stressed over no backup if I were to let my second vehicle go bye bye! Only $100 more per month than had I not fully funded relinguishing vehicle!

[andy158]

Our bk13 filing was a piece of cake. We had tried to file bk7 with a privious attorney (only did bk7's and consumer law) and he pulled all the magic he could to qualify us over a two month period, but WV has one of the lowest median incomes so we ended up going bk13. We compiled a nice spread sheet budget with monthly, bi annual (car insurance) and annual (property taxes) expenses while working with the first attorney. Had copies of all the statements we put into the spreadsheet, put it on a disc and gave it to our bk13 attorney. He was impressed and made only minor changes.

[dmc-2008]

Why is it they won,t allow for student loan repay in rhe budget?