Expenditures?

[325Falcon]

Are ones actual expenditures used on schudule-J untill a certain limit then the fed guidelines take over.

So its a which is lower thing? I just dont get it.

[lrprn]

Are ones actual expenditures used on schudule-J untill a certain limit then the fed guidelines take over. So its a which is lower thing? I just dont get it.

Some expenses you are required to use national IRS and Census Bureau figures plus local standards on the forms - http://www.usdoj.gov/ust/eo/bapcpa/2...anstesting.htm . For the rest of the expenses you use your own.

Frankly which bk chapter you intend to file - 7 or 13 - impacts whether you use your actual allowed expenses or what the trustee will allow and matches reasonable expenses in your neighborhood. You don't get to make things up, but it is possible to "pad" the expenses a bit, especially if you've been living on ramen noodles and haven't bought new clothes in years trying to whittle down an impossible mountain of debt.

For Ch 13, your income is typically higher so you are looking for higher expenses to offset the higher income and keep your disposable income as low as possible. Creating a good Ch 13 plan that filers can live on for five years is an art rather than a science. Having a top-notch bk lawyer who knows what the trustee and court will accept goes a LONG way to making Ch 13 liveable or a misery.

For Ch 7 if your income is already well below the state median, you don't have to complete the entire Means Test and as long as your income minus expenses don't show more than $100/month disposable debt, you're fine.

This is over-simplified but does explain some of the differences around expenses between the two bk chapters and when you use required expenses and when you can use your own. Hope this helps!