Overestimating Expenses on Schedule J?

[SOCALBK7]

How would anyone find out what the true expenses are if someone where to overestimate their expenses each month to make the mean's test work in their favor?

Playing Devil's Advocate.

[sunshinepa]

Obviously, a trustee could ask for proof (clearly states anything over allowances must be justified). Also, I suppose if need be and you could not explain, your bank statements should obviously show what bills you paid so if you are planning that,................think long and hard before attempting it.

[HHM]

Obviously, a trustee could ask for proof (clearly states anything over allowances must be justified). Also, I suppose if need be and you could not explain, your bank statements should obviously show what bills you paid so if you are planning that,................think long and hard before attempting it.

That pretty much sums it up.

[newbie2]

How would anyone find out what the true expenses are if someone where to overestimate their expenses each month to make the mean's test work in their favor?

Playing Devil's Advocate.

Trustees are very good at sniffing out things like this. Yesterday you asked about bank statements, today this. My 2 cents: Don't file a bankruptcy petition unless you can be 100% truthful. It's not worth the risk.

[momofthree]

Also, you're mentioning the schedule J as the means test. The means test is separate from the schedule J and has to follow IRS guidelines. If you're passing the means test with zero-to-little dmi, then your schedule J will probably be fine. If you have been living bare-bones for a while, I don't think it would hurt to increase your living expenses up closer to IRS standards a few months prior to filing bk.

If you don't pass the means test, and are already living at or above IRS standards, then padding your schedule J with inflated numbers will probably be a red flag to the trustee and you could be in hot water. I don't think anyone here would recommend that....

[optimistic1]

You can always accidentally overestimate, and if someone objects, simply make a correction to your schedule, that can be done after a 341 meeting by the way. I would not worry about until someone asks, most trustees are swamped, and it will just get worse considering congress is not passing a new unemployment bill.

[newbie2]

You can always [I]accidentally overestimate,[/I] and if someone objects, simply make a correction to your schedule, that can be done after a 341 meeting by the way. I would not worry about until someone asks, most trustees are swamped, and it will just get worse considering congress is not passing a new unemployment bill.

And what about the part where your signature comes in to play swearing that everything you put on the petition is true? I know it's easy for all of us to try and game the system a dollar at a time, but when it all adds up it can be trouble for that person.