May have too much disposable income, but....

[Tacadac06]

Considering filing for Chapter 7 to eliminate nearly $10,000 in debt, mostly credit card. I also have around the same amount in Stafford student loan debt that I don't plan on contesting. Basically, I make around $2000 per month, placing me will below the median. My roommate lives off SSI in a home owned by their mom (who doesn't live with us), and only asks that I pay $200 in rent with utilities included, and with another roommate covering another chunk of the rent/utilities. Even after making vehicle payments, I have several hundred dollars left over. I'm thinking of taking on more of the household utility payments and perhaps paying a more typical amount for my rent to increase my expenses on the Schedule J, at least for a few months.

From a purely legal standpoint, is this a good idea? I'll add that I haven't made payments in over a year, and make payments on a car I don't own (I'm not on the loan or title), in exchange for permission to drive it provided I keep it insured and maintained (it'll be mine in a few years when it's paid off, but I don't think that's relevant to the case). My understanding is that this is fine since I'm making ongoing payments for an ongoing service rather than paying off a debt in my name.

(edit) And yes, I'm actually proposing permanently spending away money I wouldn't have to spend otherwise on bills I'm not being asked to pay, so that when I put the expense on my Schedule J I can hand the trustee a receipt if necessary.

[LadyInTheRed]

My understanding is that this is fine since I'm making ongoing payments for an ongoing service rather than paying off a debt in my name.

It is true that paying your living expenses would not be a preference payment, which is what you are alluding to, but there maybe other issues.

I can't tell you whether it is legal or in any way problematic to intentionally and voluntarily increase your expenses so that you can avoid an objection to a Chap 7 discharge based on totality of circumstances. You need to consult with an attorney about that or anything you do for the purposes of qualifying for a Chap 7 discharge.

If you have several hundred dollars a month left after paying your living expenses, why not just work on paying down that debt? Bankruptcy should only be used when you truly cannot manage your debt. If based on your current financial circumstances you can pay off your dischargeable unsecured debt within 5 years without filing BK, you probably don't need to file BK.