Schedule J shows negative number?

[LittleB72]

Just got my filing paperwork from my lawyers.

My schedule J shows a negative number because they added in my lawyers fees under 'installment payments' as well as another installment payment of 300.00 for a 'replacement vehicle' that I need to call them about! NO CLUE and of course they are at lunch right now....

Anyways, won't a negative number be a problem w/the Trustee? As in 'she obviously can't afford to keep her car so we want it' type situation???

[jdcat]

I have never heard of installment fees for an attorney on schedule J. That doesn't sound right at all.

You don't actually have a $300 installment fee for a car that you pay each month? If not that doesn't seem right at all either. You shouldn't be able to claim an expense that you don't have but might have in the future.

[LittleB72]

Well, I am paying the rest of my lawyer fees in installments (March, April and May).

No, I do not have a 300.00 car or 'anything' payment. My 400.00 car payment shows correctly on the schedule.

I'll be able to reach them in about 10 minutes for some answers. GAH!!

[SMinGA]

When are you filing? Its unusual for a ch. 7 attorney to allow you to pay him/her after filing.

Even if that is the case - it seems unusual to put that on the form when its just short term. When you take out these 2 amounts, what is the bottom line? If its positive by much then you could face trouble with the trustee wanting to convert to a 13.

[LittleB72]

My case was filed on 3/6.

I signed all paperwork on 3/4. I had to bring them updated payroll information since we didn't file until March and we had expected to file in February. The new payroll information would not have changed income figures and I was told they were using the figures I gave them for the budget/schedule J. In hindsight, I should have examined this closer before signing I guess but I had no reason not to believe they would change it without informing me/explaining it to me first.

I just called and didn't get a very convincing answer/explanation from the secretary. I will be making an appt. with the lawyer himself ASAP.

Without these two numbers I would be +450.00 (according to them) but other items on Schedule J were changed and I don't think my husband's income was calculated correctly either.

Breathe in. Breathe out. Breathe in. Breathe out.

[LittleB72]

If the lawyers fees are not allowed, that would put me at +150.00 or so and I would be o.k.

If the 300.00 is not allowed as well, that would put me at +450.00 or so.

What is rather odd is that there is 300-400.00 worth of wiggle room in the food and clothing monthly expense for a family of 4. I had down 920.00 and the IRS allowance is 1300.00. I don't understand why he wouldn't put the extra 300.00 there rather than list a 'possible' future expense.

A possible future expense and a temporary expense don't sit well with me..but I'm not the lawyer. Guess I'll wait to see what his explanation is.

[killinstinct]

You're fine. Negative is good. Shows you're broke. Calm down and trust your lawyer. I know it's hard to believe, but they are looking out for you.

[momofthree]

If the lawyers fees are not allowed, that would put me at +150.00 or so and I would be o.k.

If the 300.00 is not allowed as well, that would put me at +450.00 or so.

What is rather odd is that there is 300-400.00 worth of wiggle room in the food and clothing monthly expense for a family of 4. I had down 920.00 and the IRS allowance is 1300.00. I don't understand why he wouldn't put the extra 300.00 there rather than list a 'possible' future expense.

A possible future expense and a temporary expense don't sit well with me..but I'm not the lawyer. Guess I'll wait to see what his explanation is.

According to the IRS website, located here: http://www.justice.gov/ust/eo/bapcpa..._standards.htm the bankruptcy food/clothing allowance for a family of 4 is $996, not $1300. This is current, as it is for cases filed between November 1, 2009, and March 14, 2010.

[LittleB72]

Weird. On my B22A line 19A it says the National standards for food, clothing and other items is $1370.00

My total on sched J for food, clothing, laundry, personal hygiene was 920.00 and he added a line item of 34.00 for school lunches.

[justbroke]

I have never heard of attorney fees as being part of "installment" payments on Schedule J. Simply because they are dischargeable. This is why almost all attorneys that I know of, require the full fee up-front before filing.

Let us know how this works out. Would be interesting. If you're under-the-median, it probably won't matter, but if you're over-the-median and the UST gets involved, it could get weird.

[LittleB72]

We are 2,900.00 over the median.
Results of means test: -328.00
Line 50: monthly disposable income: 0
Line 51: 60-month disposable income: 0
Presumption of abuse does not arise

Schedule J: -120.00 (roughly)

This lawyer has been around for years and comes with great recommendations. So, it isn't his first rodeo...BUT...I'm not comfortable with him adding/changing things I had no knowledge of, especially when I have to swear in court that what is on the schedule is correct.

[justbroke]

I would just see how it plays out. If your attorney has been around for a while, he knows the landscape, the Trustee and the UST, so follow his advice. It is interesting though, the attorney fees as an installment.