Monthly expenses and chapter 7?

[1stfatty]

obviously monthly expenses are required for Chapt 13. Are they ever required for Chapt 7? If I own an exempt homestead, and a beater auto. Will I still be required to show expenses even in a Chapt 7 for any reason?

[keepmine]

Yes, you'll have to fill out schedules I and J to determine if you have sufficient monthly disposable income to fund a Chapter 13.

[1stfatty]

Understand that for chapter 13....

But for Chapter 7, will there be any chance expenses are needed?

[Pjmax]

You would fill out schedules I and J as Keepmine said. These schedules will determine the amount of disposable income after allowable expenses. If you do not have high enough expenses, and your disposable income is too high, you could be required to file a 13, as this shows you have some funds to pay some or all of your debts.

This is the very simplified explanation. Hope it helps.

[1stfatty]

thank you. But...

I cannot qualify for 13. my debt exceeds the max limits, and more than 50% of debt is non-consumer. So for now, lets assume 13 is not possible. are there any circumstances where expenses are required for a chapt 7

Obviously, I have been living cheep, and would want to increase my expenses to a more sustainable yet acceptable level.

[Pjmax]

All circumstances require expenses for Chapter 7. See Schedule J:

http://www.uscourts.gov/uscourts/Rul...006J_1207f.pdf

The BK court doesn't just take your word that you can't afford to pay your debts.

[1stfatty]

thank you

[1stfatty]

another thought.?

Assume one 'qualifies' for chap 7, but has disposable income, are you pushed back to 13?

Is this the totality of circumstances?

Confusing, because if payments made, then it should be a chap 13, but under 13 the total payments should cover 25% of total debt, and there are debt limits!?

[keepmine]

thank you. But...

I cannot qualify for 13. my debt exceeds the max limits, and more than 50% of debt is non-consumer. So for now, lets assume 13 is not possible. are there any circumstances where expenses are required for a chapt 7

Obviously, I have been living cheep, and would want to increase my expenses to a more sustainable yet acceptable level.

You need to flesh this statement out a little for us.
What do you mean you've been living cheap? Plus, if over 50% is non consumer you're exempt from means testing.

HAve you consulted with a lawyer?

[1stfatty]

Lawyer consult later this week.

yes over 50% without question. But with the totality of circumstances, could I still be pushed into monthly payments, ie chapt 13.

Living cheap, simply means getting by. several insurances lapsed, i.e house. past due for dental visits. auto ready to die.

Stuff one can live with for short time. I wanted to wait til after bk for a replacement auto, etc.

WOuld not be able to have court payments and auto. THus my whole question. If I "qualify' for Chapt 7 in every way, >50% non consumer ; 5yrs of payments not able to pay 25% of unsecured ; annual household income under median..... then if my budget has surplus? what happens. if I get pushed back to 13, then I have no choice but to replace a 90% used up auto (as opposed to using it til junkyard), etc.

Yes will get lawyer opinion, but was looking for others as well

[keepmine]

Here's what I'd do. Stop living cheap and live a normal lifestyle.

Here's a link to a reasonable version of schedules I and J.

http://www.legalconsumer.com/bankruptcy/means-test/index.php

Fill it out and see where you are with disposable monthly income. A car payment may help with reducing your MDI. Pay those insurance policies, go to the dentist. Get your eyes checked,etc. These are legimate expenses and are forward looking.
Find out where you stand in relation to MDI and go from there.
Are you trying to hold on to something that's secured like rental property,etc.

[1stfatty]

thanks Keep

I will check that out.

Not really trying to keep anything particular, just as much as can.