Too much money left over?

[colleenbean]

My lawyer thinks my case will be smooth sailing, his only concern is that he thinks i will have too much money left over monthly after I file. Anyone run into this problem?
Should I buy a car now before my credit is ruined-I wouldn't include it in my bk obviously........what does everyone think?

[cathywhite4495]

I had a similar issue. Make sure you claimed absolutely everything you can think of. There are a lot of misc needs we don't always think of (seasonal clothes etc). Are you contributing to your 401(K)? I would look at an option like that before taking on a new debt. Unless you need a car and were planning to get one regardless. In that case, I would be conservative and get something lower priced.

[JollyGG]

Check out this calculator that may give you some ideas for some of those less frequent expendentures that should be in everyones budget.

The link can be found in the general bankruptcy section. Under "links for members"

http://www.ca-bankruptcy-attorneys.com/calculators/expense_calculator.html

If you need to get a new car, and you can deffinately afford it. It might be a wise idea to get something reliable that will last you while you still have the credit to get a lower interest rate.

[colleenbean]

Thanks guys.
I have a call into my attorney to see his opinion.
Who knows how long it will be until i can by car after bk...........................

[CATCHMEIFYOUCAN]

Less disposable income !

I didn't have a car note when I was about to file. Than my honda got flooded, I had to buy a new car. I bought a Huyndai Sonata GS, so that added one more expense to my budget. $350 a month. If I hadn't gotten a new car the Trustee would be smiling at that "extra income," you know! So if you need a car and can afford it, by all means get one before you file, just make sure you can prove at one if not 2 payments on the vehicle at the time of filing!

Best of Luck, Catchmeifyoucan

[southernbelle]

I have a stupid question. If the advice here is to purchase a car if it's needed and if it can be afforded, isn't that going to become an asset that would be just as big of a target to the Trustee as the money used monthly to pay for it (assuming it's not exempted 100%)? The only reason why I ask is because I will have money left over at the end of each month and would be scared to death to make a purchase like that right before filing.

Another question is the listing of expenses on the schedules. If I list literally everything I can possibly think of from weekly church contributions to vitamins, then I would come out even, but my biggest fear is that the Trustee will say that some of my expenses are unnecessary like premium cable and my gym membership. It concerns me because I am above the means in Louisiana and will file single and even with more than more than 50% non-consumer debt (which exempts me from the means test), I am literally awake at night fearing that I will be forced into a Ch. 13 because of the tax debt that I want to handle on my own or because of my income. I would rather not have a warden for the next 5 years, but I'm mentally preparing for the worst, not to mention the fact that I have to wait until Dec. to file and the creditors are circling like sharks!

[uofaguy]

Hi Colleenbean,

It sounds like you are in a similar predicament that I am (disposable income left over each month). I have met with 4 different BK attorneys and only one one said he was fairly confident that my wife and I could get a chapter 7, but the other 3 have all stated that there is no way (both my wife and I work and have fairly good incomes & thus, are way above the median income for our state).

We currently max out our 401k contributions annually and doing so makes us look good for the schedule I & J (our debt is rental properties/business debt so the means test does not apply). However, the last attorney I met with said the trustees are not going to allow us to factor in 401k contributions on the Schedule J and that due to our income we will face great scrutiny.

Are 401k contributions an allowable expense? If so, is there a reasonable limit? I have heard that it varies by the trustee, but I guess I can't see a trustee allowing 15 or 20% of one's salary to go to 401k, which is what we need to make the schedules I/J work. Are 529 college plan contributions allowed? Thoughts?

Thanks.