Schedule J

[rntuqt]

Well, as I fill out these forms I get more and more questions. I suppose this should be obvious but. . .

I have no problem meeting the income standards since I am well below median income. But my schedule J shows a net monthly income of $200+ per month. Does this mean I don't qualify for CH 7?

J

[cupcake]

In other words, are you saying that your schedule J shows that you have $200/month in disposable income? If so, you need to make sure that you haven't missed any monthly expenses. It is my understanding that nobody on this forum has ever been forced into a Chapter 13 for this reason but realize that it's possible that it could happen.

Here is a sample expense calculator you can use that might help you remember some expenses that you may have forgotten about:

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

[kimba251]

You must have missed something if you really have no extra income. I'd go back and recheck your numbers. Make sure everything you incur monthly is on there like medical co-pays, pet food and vet bills etc.If you pay it even if it's not monthly make sure you budget for it.

I don't know how it works if you really do have 200 a month left over. I know in my area if you have 186.50 left over you belong in a 13.

Make sure your numbers are right

[joab]

And remember these are estimated average monthly expenses. Don't forget to factor in expenses that are not necessarily every month but are likely to occur in the future, such as new brakes for the car, your kids' 6-month dental checkups, etc.

[liz417]

Don't forget Copays and subscriptions (that are paid yearly) and/or kids after school activities, etc.

Good Luck!

[bkrelief22]

And remember these are estimated average monthly expenses. Don't forget to factor in expenses that are not necessarily every month but are likely to occur in the future, such as new brakes for the car, your kids' 6-month dental checkups, etc.

I'm wondering...do you need to have a bill/estimate for brakes and stuff like that before you can use it on schedule J?

Thanks for any replies!!

[soleprop]

wouldn't hurt. but it isn't asked for except maybe in situations where the trustee or UST is doing the random audit deep dig on a case. you can budget/plan for realistic necessary expenses. that's kinda what we're supposed to be doing anyway but have obviously failed at prior to filing bk ;).

[ThreadsSnapping]

No, you don't have to have a bill/estimate to use it but every car has repair and maintance costs associated with it. You will eventually need new brakes, tires, winshield wipers, etc. Depends on the car you have as to how much you can use for repair cost without the trustee questioning it. A 1 year old car, probably $50-$75 a month would fly easily, while a 6 year old car would probably not get too many questions over $200 a month. Did you also factor in your oil changes and registration costs?

Did you factor in haircuts and other things that you only do once every few weeks?

What state are you in and are you married, kids?
What numbers are on your sch j now?

TS

[danaf]

The best advice I can offer is check your food clothing & other items against the IRS national standards. If yours are too low, bring them up to match what is on this site. Doesn't matter what you really spend - the figures on this site are allowable. I filed pro se and used max for items in this link with no problem. Also do not forget to include cost for car tags (yearly /12) & car insurance...I used max for car costs because gas is so expensive. Car loan is separate from this link. And if you have any student loan debt, include that monthly payment as well because it cannot be discharged. I also used pacer at my local bk office for free to see how attorneys did the paperwork and noticed a $90 misc put in other so I did the same.

http://www.usdoj.gov/ust/eo/bapcpa/20080317/meanstesting.htm

[Phillymanhere]

You just haven't filled out the form "correctly"! I have an old car and I pay about $200 a month in maintenance. I don't pay it regularly each month ... But twice a year, I have about $1,000 of work that needs to be done! I have receipts from it, but you may not need receipts as maintenance is clearly allowed.

Things people tend to forget about:
dental bills
glasses and contacts (my contacts cost almost $30 a month when I prorate)
prescription meds
over-the-counter meds (these add up! maybe $10 to $20 a month easily for many people.)
shoes
house expenditures like on beds, lamps
charity
some entertainment (not huge)
some gym fitness spending ....(not luxury)

go through old forums here and catch up on this! Look for schedule J.

good luck.

[happy_ira]

People have offered great pointers - keep massaging the numbers. Do not lie but make sure you dont miss anything.

[ThreadsSnapping]

Also think of the things you would do if you had the $ you were spending on credit cards and such every month. We were buying all of our clothes on clearence and only when absolutely necessary. Last weekend, I bought some clothes for the fall and whereas I was careful as to what I spent, I did spend more than I would have before we filed. I also bought some kitchen utensils and a new toaster oven so I don't have to fight with my toaster everymorning to get my toast out - the pop-up part had stopped working over a year ago. The things PhillyMan posted are good things to think about also.

TS