ATTY & Expenses Question.........Help

[sunshinepa]

So I have only done one post in a long time. I hired my attorney today and will be filing a CH7 by mid-April. I am concerned about an issue so I hope some folks who had similar experience can relieve my fears.

After discussing options due to large debt and balance transfers in a short time period, I was leaning toward a CH 13. My atty. raised my expenses to make a CH 7 work. For example...........360.00 a month for food and etc. He indicated all the amounts he put higher than the "standards" are reasonable expenses and he is not worried at all that they might be questioned.

This really makes me nervous........anybody else had the same experience. I would like the CH 7 but really could do a Ch 13 at 166 a month for 3 years.

Can I have some thoughts please and/or your experience with this raising of the expenses to qualify???

Thanks.

[keepsmiling]

How many are in your household? 360/mo for groceries and is not a huge amount by any stretch..... I know we on the board are used to living on sales, bargains, beans and coupons lol, but plenty of "regular" people spend way more than that...

I'd like to think you can trust your attorney on this; so often it's the other way around and they want to put you in a 13 .. if the 7 becomes an issue, you can always convert to a 13.

[Unibrow]

If you went with the atty because of his experience, reputation, and relationship with local trustees, then you must follow his directions. He knows better than you and should know what works and not work for the local area. But then again if you have an incompetent atty, then you should be very worry.

Also some of the the things you see on this forum is very area specific. Hopefully by visiting several attys before choosing this one that you get a general feel of the local area.

[ValleYum]

Hi sunshinepa!

I worried about the amounts my attorney listed on the Means Test, too. But we pay to have an attorney so that we can benefit from their wisdom and experience so we need to try to have faith in them (at least until proven otherwise!). The national standards that your attorney was talking about and that mine reassured me about using are those that we are entitled to put on the means test without having to prove them.

From the National Standards (with the brand new effective date of 3/15/11 - yes, they just changed again):

Expenses for One Person
Food----------------------------------$300
Housekeeping supplies-------------$ 29
Apparel & services------------------$ 86
Personal care products/services---$ 32
Miscellaneous------------------------$ 87
Total----------------------------$534

So if you include housekeeping supplies and personal care products in with the groceries; the amount of $360 is exactly right on target according to the standards.

The rent & utilities standards are done by county and you can look at the newest list here: http://www.justice.gov/ust/eo/bapcpa..._charts_PA.htm

Healthcare standard amount is $60 per month if you are under 65 and $144 if you are older. Most people get to claim more since their actual amounts are much more what with copays and Medicare Part B or health insurance premiums and OTC items, etc.

I think you will be just fine. Oh, FYI, the new median income for a 1 person household on PA is $3,741 per month. All of the lists and standard amounts for the Means Test can be found on the US Trustee website here: http://www.justice.gov/ust/eo/bapcpa...anstesting.htm

I wish you so much good luck with finally getting filed!!

[sunshinepa]

Thanks Valley. I actually am under median income for pa...........knew that one forever, LOL. the problem may come in with my mortgage and equity which might force me into a 13 to keep my house. I won't know that until I get the CMA. I am being forced to file quicker than I wanted as Citi has filed a lawsuit and I only have until 3/31 to respond. I hope to tie it up and with a bunch of work this week.......can file about mid-April.

[ValleYum]

I was FLOORED by our CMA. We were further in the hole than I had ever anticipated - and I hope that is the same for you (in the best way, of course!) Oh, and Citi is relentless from what I understand. We didn't have a Citibank card - our most evil credit card account was Navy Federal. They were horrid.

Take care of yourself and keep us posted how things go!