Okay gang... Our true expenses vs our income Please help

[freshstart06]

Disregard previous post, this is the complete list of expenses. If a trustee needs proof I can provide it but I downplayed some of the amounts. Please note, I live in very hot Phoenix and everyone out here has a very high electric bill in the summer and very high gas bill in the winter. Please look at this expense report, If I left anything out let me know and please tell me how we can improve our situation. I plan to go back to work as soon a I heal but I am commission only so you can no depend on my income.

Family of 6
Current income monthly gross: $6800
Minus payroll deductions ie taxes, medical, 401K, etc: $1900 monthly
Total Net income: $4900 If you add the Reservation profit sharing $5566
Total expenses: $6155
disposable income: NEGative -$1200
This is why even though our gross income is over the median we still qualify for chapter 7, we are negative even before and debts can be paid.

I really need help here.

Expenses:
Rent: 1,300.00

Electricity: 350.00 everyone in Phoenix has high electric bill

Natural gas: 140

Water: 50

Telephone: 120.00

Cell phone/pager: 130.00

Cable/satellite television: 70.00

Internet: 60.00

Home Maintenance: 50.00 includes yard as well

Food:$1000 includes kids school lunch and hubby's lunch

Household items (non-food items): $70

Hygiene supplies (tooth paste, toilet paper,

etc.): $65

Clothing: 300.00 $50 per person

Laundromat, detergent, softener, etc.: $55

Average medical and dental expenses: 355.00

Prescriptions and "over the counter"

medications:

$170

Magazines, periodicals & newspapers: $40

Recreation & entertainment: $100

Charitable contributions: $100

Auto Insurance: 160.00 Per month 0.00

Gasoline: $250

Vehicle maintenance: $50

Vehicle tax & registration: $20.83

ANY other tax: 500.00 payment plan to IRS or face garnishment(we may be able to reduce this if we can show hardship)

Vehicle installments: 440.00 total for both cars, we have older cars.

Childcare: $210

[freshstart06]

Also note, my husband is going to have to start exempting less taxes because he always owes too much at the end of the year which will reduce his net income, we have not made the final decision on this yet.

[JRScott]

Based on what you have here, bankruptcy alone is not going to fix the problem. Some things you are going to have to just simply do without. I know its not easy, but in time you learn to deal with them.

My greatest concern is with these numbers I don't see a lawyer or judge or trustee signing off on letting you reaffirm the vehicles. Since that would place an undue burden on your family being that you are so far in the negative.

So in order to get that to pass if you are intending to keep those vehicles you are gonna have to make it so that your income meets your expenses.

Counting your distribution from the reservation that means you need to shave off 600 dollars in expenses.

I'm surprised you can feed 6 people on 1000 dollars, I suppose feeding more costs less than I'd imagine.

On the taxes you are paying on, are those from taxes that came due in the last 3 years or longer, if longer there is a chance you could get that dismissed as part of the bankruptcy, if less than 3 years...practically impossible.

Barring that the only thing I can see is you need to cut back on Phone Use, 120 dollars a month sounds pretty high for a ground line. I had to discipline myself in this area, I don't have long distance carrier at home. I buy a prepaid phone card once a month and that's all I get.

Cell Phone/Pager: Is this required for work? If its not it might be time to consider turning it off. I've never had one myself but I know my dad and brother are notorious for leaving their's at home.

Internet: Well not sure what it runs in your area. Here I'm on dial up because it only costs 20 dollars a month. I'd love to have dsl or wireless if I could . If you are on dsl or wireless you might look into another provider or check to see if they have a less costly package, even one that you might have to watch your minutes on.

Cable/Satellite Television: I don't even own a TV anymore. I can't afford one and I can't afford the cable bill even if I had one. You might need to get rid of this, I know its hard with kids but I do know couples that do it. Barring getting rid of it its time to scale back to a more basic plan (assuming this isn't the basic plan.....).

IRS Garnishment: I'd definitely look into having this reduced as part of the bankruptcy or outside the bankruptcy, clearing you look as though you are having a hardship case. If you could get this cut in half and the above scaled back to say half their current costs or so, you might could break even.

I'm impressed that you can feed a family of 6 with a thousand dollars, and many of your other areas show that you are skimping already. Medical is high but having read your other threads it seems reasonable for what is going on.

The only other areas I see possibility of cutting back really beyond those above would be your Entertainment budget (and let's face it at 100 dollars for 6 people, that's like a movie a month at the theater and not much more), Charitable Contributions (and I hate to tell anyone to cut back here as the Charities need it, for the first time in 2 years I am finally paying my tithe since filing bk), and then Magazines, etc ( you could maybe cut back a little here, but still for the size of family what you are spending is reasonable).

I hope you are not offended by this analysis and I do realize it will cause some pains in changing but the sooner you realize that you have to change the better. It took me far to long to learn this and I have suffered a great deal because of it.

[freshstart06]

stay a little above water. I filed for temporay Disability so that can help. But I was told that can take up to five months. things just got bad when I could not work anymore and my husband garnishments from student loans but that is paid up now. I am doing everything the doctors says so I can heal and get back to work but of course the daycare cost will increase.

We have to keep my van because things will get worse, my husband's job is 45 minutes away both ways and the doctors appt, kids ....

I will have to pay with the number some more before I send this to the paralegal to file.

[freshstart06]

by the way, it is hard feeding 6 people with $1000 that is one of the expenses I downplayed because I did not want to appear too negative.

[JRScott]

I saw in your other thread you were planning on doing some gardening. That might be a good way to cut down on food costs. Vegetables are kinda expensive.


If you have filed for disability or plan to get back to work then any cutbacks in services/activities would probably only be short term.

I do hope you get to keep the van .

[freshstart06]

Jrscott, thanks, my bk preparer told me not to worry she will handle the numbers and make them work.
This entire situation is only temporary. I do plan to go back to work and I have filed for disability just to hold us over until I can work full time again. thankfully, my situation is somthing that I have to "heal" from or life threatening.

I am determine to never visit this time in my life again. Things are going to change and I will make sure we have a savings to live off once we get a clean start.

[JRScott]

Glad they will help you , but jiggling the numbers will only help short term but if it gets you to keep the van that's good .

Savings is very important that's part of my plan too . When you take your Financial Management class, the one after you file, it has some good info on what to avoid and what to do. I took lot of notes. I'm also about to start a course by Dave Ramsey called Financial Peace University. Its not part of the bankruptcy but I figured I'd educate myself more.

In the FM class it said that we should save 3-6 months worth of money in a savings account. This would be sufficient to pay utilities, rent, etc. My church encourages all members to have a year supply of food on hand to and I'm gonna try to work up to that too in the coming year, though it might take me 2 years or so to get the savings up to 6 months and enough food to last a year.

Anyway you'll get more good info on the way