A comment about expense questions

[jb4lcm]

In your statement:
"Afterall, the chapter 7 trustee does not want your case converted to a 13 because THEY don't get anything, thus, its the US trustee that looks at expenses."

Who is THEY, and, WHAT do THEY get? Yes, I am stupid (NEW) to the BK thing.

JB

[chemteacher]

I live with my fiancee, who is a student (and makes less than $400 a month). We live together in San Jose California, and I finance all of the expenses. Can I claim her for chapter 7 as an adult living in the household? It seems unfair that even though I pay her expenses, her paycheck won't even cover half our rent and she is entirely dependent on me.

[carlsbadmike]

You should be able to find an answer to your question somewhere in this forum. It seems like if you could claim her as an adult in your household that you would also have to claim her income. Depending on your means test, you may be better off not mentioning her. I'm not an attorney, I'm just giving my opinion.

[chemteacher]

She only makes about $400 a month, so I don't think that her pay will preclude me from passing the means test. That is, I don't think her pay will offset the extra amounts allowed for having another adult claimed in the household... But maybe I'm wrong

[carlsbadmike]

My attorney guided me on what reasonable expenses were and in a lot of cases she raised my estimates to what I could get by with.

[platter]

In your statement:
"Afterall, the chapter 7 trustee does not want your case converted to a 13 because THEY don't get anything, thus, its the US trustee that looks at expenses."

Who is THEY, and, WHAT do THEY get? Yes, I am stupid (NEW) to the BK thing.

JB

I'm wondering about this as well.

[HHM]

The chapter 7 trustee liquidates your case (assuming you have assets to liquidate). However, the chapter 7 trustee will bring a case to the UST attention. And there is a way for a chapter 7 trustee to get paid in the subsequent chapter 13 depending on the exact circumstances.

However, the point is, it is the United States Trustee that ultimately oversees the integrity of the bankruptcy system and the UST is an arm of the U.S. Dept. of Justice. The individual BK trustees (chap 7 and chap 13) are private individuals appointed by the UST.

[StEt0417]

just curious what if your not paying on your mortgage and debts? In our case it frees up some money, but if we where to make our monthly payments we wouldnt have anything. We have one income and are a family of 5.

[Laurie77]

@ jb4lcm, I apologize if this has been answered already. I believe "they" refers to the trustee. I say this because our attorney told us the trustee gets 10% of whatever asset they seize. In a Ch 13 case, you might not have any seizing of the assets (??) because you're paying back the debt, hence the trustee gets nothing if he seizes nothing. That's my answer. I could be wrong. :o)

[smalldragon1]

Hi you!!!
I am anew member in this forum. I have just read your entry. I think is is really interesting and useful for me to answer some questions.
Hope more entries from you!!
kind regards!!

[kleinkp]

If I spend less then the irs amount can I claim the irs amount instead of what I actually spend?

[pavlikclan]

I had never actually looked at the IRS thing. Our total is $3620 for the five of us. That is for grocery, personal care, car, utilities and home, and healthcare needs. We are over on utilites and home by maybe 100 bucks at most. Figured WAY under for grocery, and healthcare needs though. We are over on vehicle as well. We spend as much in gas a month for my husband to commute to work as the vehicle expense. Guess it's a good thing he is a mechanic and we don't have to pay to get our pieces of junk worked on!

[djd]

I don't really understand this. If You make less than the median income and thereby pass the means test, are you still obligated to tell them where every nickel and dime go? This is unreasonable, as things come up. Your car breaks down, that's a $500 repair. It's not a reoccurring expense every month. If I have $200 dollars left every month the trustee might think i have the means to pay, but then the car breaks down, then what? I'm stuck with a chapter 13 plan, spending every last dime I have and no money saved up to fix my car.

[overthedebt2]

Does anyone have input on what djd posted above? I was wondering the same thing myself..

[goturtlego]

I'm interested in this question as well....of what stet0407 asked.

My attorney said there is an allowed expense for rent so we would apply that, i just have to let him know which I'm going to use since we are in the middle of a modification.