Newbie with questions regarding payment amount and reasonable living expenses

[Monicak1971]

My husband and I went in for our signing today and things didn't go as planned. Our income is showing significantly more than actual because my husband returned from an overseas military assignment in December. Instead of filing today we are now waiting until July. We also found out my mileage reimbursement is counted income. As it stands right now our total monthly income is 6800. I am trying to understand what are considered as "reasonable living expenses". We have only lived in our rental home 45 days so utility costs are still pretty unknown. Our attorney said we are only allowed x amount regardless of actual cost. That worries me since in the summer we have to use the a/c due to our son having asthma as well as myself. How will this work? What about grocery expenses; how are those calculated? I am so confused.

Monica

[Pjmax]

Did you talk to more than one attorney before hiring the one you have?

Oh, and welcome to the forum! I know the experts will be along soon with some advice, but you've come to the right place.

[Monicak1971]

We talked to a few attorneys, but ended up hiring this firm because of their rating and experience. We have already paid him $3000 so switching isn't really an option. I have looked up the national standards on everything and feel like he has our budget very low.


Monica

[forgotten]

Why do you need to wait? You base your payment plan on forward looking income. If he makes less money now you use those numbers, not the ones from the past 6 months.
You put down what you actually spend on everything. If it is above the standard for your area you will need a good reason however. I don't see how your attorney can say you are only allowed so much for your energy bill? That is pretty clear cut... You need energy and it costs what it costs. I would suggest seeing if they have a budget billing option so your monthly energy payment will stay the same each month. If you just moved in they usually base the $$ amount off the prior owners usage until they see what kind of usage you have.

[Monicak1971]

The attorney stated the payments are based on the average income for the past 6 months, not anticipatory income. This is why he wanted to wait. He also indicated we have time because until January we were current on all of our payments. We are on levalized billing for our heating costs, but the electric company would not set this up until we have been in the home for at least 1 year. The previous tenants household composition was much different than ours so I have pulled averages for a house this size, built in the same year, and located in the same community. I am hoping I will be allowed to use those. I have done the same regarding water and sewer for the same reason. According to a link I found the IRS indicates housing and utilities for our community should average $2054 per month. We are $51 over that, but that is due to our home security system that is necessary given my line of work. I am hoping the trustee will allow it.

I also found that for a family of 4 the average costs of food, hair cuts, household repairs, etc is $1450 per month (including $300 for misc.). This is pretty close to our average. I will be keeping receipts to support these expenses. Where it gets higher than average is transportation. We have a male teen driver so our insurance is high. He needs to be able to drive so he can get to his part-time job (saving for college). I also drive 1000 miles per month for work. Yes I get mileage reimbursed at the federal rate, but that is not anywhere near enough to cover actual fuel costs, maintenance, and repairs. I also commute 30 minutes each way to work. My husband commutes 20 to work and 35 home (he picks up our daughter from day care).

So for those still reading this novel (thank you and sorry), we are asking for $2054 for housing and utilities, $1450 for food, recreation, houeshold repairs, and personal needs, 336 for car payment 1, 495 for car payment 2, 380 for vehicle insurance, 300 for dental insurance premiums, 290 for retirement (recommended by the attorney), 272 for day care, 30 for pets, 30 for laundry, 100 for car maintenance, 450 for vehicle gas, 220 for braces bill for our daughter (anticipatory expense supported by documentation), and 150 for contingency/emergency fund (attorney recommendation). Do those numbers sound reasonable for a family of 4 in the west region?

Monica