Chapter 7 and schedule J

[nidongwo]

[helpmeout]

If those are your actual expenses, you have more issues to worry about than being kicked into a Chapter 13.

First, the food cost is rather high for a household of 1. I have 2 kids, the food I listed is $650. The Trustee may very well question this. Probably a good idea to start saving your receipts.

Gym membership and recreation would be lumped together. And I seriously doubt that the Trustee will accept you spending $150 on entertainment. You may get away with the gym membership, but forget about the $100.

There are some other areas that the Trustee may question.

You really should consult with a few lawyers and go from there. One other thing that I suggest you do, especially if they are your actual expenses, is learn to live within your means. And that will mean cutting out of your budget so that it isn't negative at the end.

[nidongwo]

Like I said I need to prove i have no DMI as to make sure I am not pused into a Chapter 13. My lawyer didn't think there was an issue with my expenses. I know its about 400 over but that is why i did that to make sure any expenses quesitoned i will still have a negative DMI.

[spetkovich]

If those are actually your expenses, and you have some evidentiary basis to back it up, then it is fine. Your expenses are what they are, after all. Just be sure you can justify any number you put on J with receipts or bank statements, if necessary.

What I would be a bit more concerned about is the excessive use of cash advances. Even if you are outside of the 90-day insolvency period prior to filing, it could be argued that your taking cash advances to fuel gambling habits was the incurring of debt without the actual intent of repaying it. Rather than haggling over a $100-150 gym membership, I'd be worried the Trustee would claim fraud in the incurring of debt.

[nidongwo]

From what i've read and what my lawyer told me. People who are addicted to gambling don't intend to lose, the intend to win! in my case I kept gambling in hopes that i would be able to pay off my debt. It would be next to impossible to prove otherwise. Also I lost a great deal of my own money that can show that i had an extreme case of addicition!!!

I hate myself for what i have done. Talking to my parents to see if they can take a mortgage out on their house to help me refinance my debt 25k.

I figured if i can get 5% for 15 years with no bankruptcy on my credit thats what i should do. Either way it will be a lesson learned, but at least this way i'm not taking the easy way out! not that bankruptcy would be easy...

[livnlow]

Regarding the Schedule J, I know this differs from the Form 22C as that one is fueled by standard allowances but I thought the Schedule J was more of a "Here is what we're spending our money on". I know it won't be pretty but is that not what this is supposed to reflect or is it more of a "Here is what we SHOULD be spending our money on"? This may help the original poster as well.

[nidongwo]

Schedule J is actual expenses going forward. Not what the IRS dictates

[momofthree]

Regarding the Schedule J, I know this differs from the Form 22C as that one is fueled by standard allowances but I thought the Schedule J was more of a "Here is what we're spending our money on". I know it won't be pretty but is that not what this is supposed to reflect or is it more of a "Here is what we SHOULD be spending our money on"? This may help the original poster as well.

You can certainly try this. But someone who is spending $300 a month on clothes, $200 on eating out, $200 on recreation, $100 on vacation savings, etc. etc. is not going to be allowed to write off all their unsecured debts so that they can continue to live the high life. The trustee can and will object to these types of ongoing expenditures. Bankruptcy necessitates a life-change, a complete re-haul of your budget, which includes learning the difference between wants and needs.