Chapter 13 Allowable Recreational Expenses

[lanakirby]

My attorney says the "standard" expense a trustee will allow for recreation, clubs, entertainment, etc is $100 per month. This gives a married couple $25.00 per week for recreation. You can't even see a movie for that. REALLY??? Will the trustee object if you ask for a more reasonable allowance such as $250 or so if your unsecured creditors are funded at nearly 100%? Can you allow for a modest Christmas for 2 adult children, their 2 spouses, 4 grandchildren and to buy something for your spouse and vice versa? What about birthdays? I'm not saying elaborate gifts, but my attorney says I can't budget anything for this. REALLY??? Has anyone else included some money for these things and been approved by the Trustee? I'm in Indianapolis Division.

[despritfreya]

Chances are that if you put a higher amount then what your attny indicates in Schedule J the Trustee will object and your Plan payment will be increased accordingly. In my jurisdiction the "allowance" is $200/month/family and includes “clubs, entertainment, newspapers, magazines, and personal care products and services”.

I typically minimize the amount listed in J and maximize another category. I tell my people I do not care what they spend but the amount listed will not exceed $x.

Right or wrong, the issue is that a debtor in Chapter 13 is expected to do some "belt tightening" and if that means no more nights out at the movies or crafting a gift instead of buying it, then so be it. Again, the reality is that what you do with your money is your business, it just cannot be used "as an excuse" to reduce what you pay to your creditors.

Des.

[HHM]

$200 is about the right number. Anything more than that, then you may be asked to justify it.

[salsa]

We are a family of 3, and 100 enterainment was the max allowed.

[LadyInTheRed]

My attorney says the "standard" expense a trustee will allow for recreation, clubs, entertainment, etc is $100 per month. This gives a married couple $25.00 per week for recreation. You can't even see a movie for that. REALLY???

But that $25 will more than pay for a month of Netflix. Then go to a movie once a month if you want. I think my husband and I (a family of 2 with the same $100 allowance for recreation and entertainment) have gone to a movie theater once in the 31 months since I filed Chap 13. We can wait until a movie is released on DVD to see it. We prefer to spend most of that $100 on other things, like Christmas gifts. Our schedule J also includes $100 for clothing and $42 for laundry and dry cleaning. I started hand washing what I previously dry cleaned and we only buy clothes that we absolutely have to. We've had to make some adjustments in our spending, but it sure beats paying 100s of dollars to credit card companies every month knowing there is no end in sight as we only make small dents in principal.

[lillymarlene]

My schedule J also only allows $100 per month for entertainment, including clubs, magazines and newspapers. I guess that's fairly standard. A person though could for example, spend less on food to have more for going to the movies, or Christmas gifts.

[AngelinaCat]

Greetings lanakirby; welcome to the forum.

I moved your thread from the BK and Credit News Forum, where you started it, into the Ch Board where it properly belongs. Please watch where you start threads. Thank you.

[forgotten]

I had to put $0 for recerational expenses, unless I wanted to fight. The trustee was against me the whole way with unsecured debt right at the limit and "luxury cars". I would love $100/mo in he budget for recreation, but we have gotten by the past 3.5 years so far!

[Pandora]

We were only allowed $60 for entertainment.

Agree with LITR - there are many ways to adjust your budget. As to Christmas and birthdays - there are several ways you can work through those. How about just buying for the grandkids? Or... draw names for adults. Set a price point and dont go over it, etc.

If you're headed into a BK - then your adult kids should understand.

[TheBajan]

We are a family of 3. Our allowable recreational expense (including gifts, toiletries, subscriptions, etc was $90. For Christmas this year, I am compiling family recipes that have been passed down and creating something of a heritage cook/history/scrapbook and giving that to each of our kids families. The grand-kids will be getting treasures from their parents childhood (nice way of saying used toys), and Disney classics that we've had forever. This is the hardest time for me because my love is expressed in large part through the giving of gifts. I can't afford to give them what I really want so I'm doing this instead. I have a son serving in Afghanistan this Christmas. I'm sending a used table-top Christmas tree and making the ornements for it out of photos of us and places here at home.

You can learn to tighten up. It's not a bad thing but it's harder at times than others.

[Sammie]

Our family does not know that we filed for BK, and we don't want them to know. Like Bajan I would love to give the kids and g'k's the Christmas gifts that we have in the past, but this in part is one of the reasons why we had to file. We used the cc's to help and give to them. One phrase that sticks in my mind is "it's only $100.00, she need Insurance for her car, they need food" etc. This Christmas we cut down substantially and we have to. Most here know, going into our 4th month of BK (C. 13) we have a major expense, our heater/ac just died and we have to pay up front to get a new one installed. This is happening within the next week.

$200 does not seem like a lot of money for recreation, but I would rather put aside $100.00 for unexpected expenses & have $100 for recreation then not have heat or a car. I put money aside this past year to buy our adult kids a gift card to a restaurant chain. Most chains will give you a Bonus card for yourself when you buy a certain amt. of gc's to their restaurant. So after Christmas my husband will be able to go out a couple of times to eat because it is already paid for. I have come to the conclusion if they don't like the particular rest. the gc came from, then they could give it away, sell it, I don't care. We have given them all a lot over the yrs. & now it is our turn to be realistic and think of ourselves. My husbands boss, our Dr., Attorney, etc. would rather have a tray of home made Lasagna over another gift anytime & that is what they will be getting.

You will eventually enjoy your new life.sammie