My numbers, amy I forgetting anything?

[mmo1]

We are attempting to file chapter 7. Over 50% of our debt is a business debt. We are trying to avoid a ch 11. Here is where we are right now, can anyone review this and tell me what other expenses we could be overlooking to reduce disposable income?

Household of 2

Income: $2632 bi weekly
Rent: $2100
Food: $650
Gas: $700 ( I travel far for work each day)
Cell: $120
Phone/internet/cable: $178
Electric: $170
Car maintance: $400 ( 2 older vehicles)
Car insurance : $180
Gas Bill: $50
Water: $100
Education: $100 (wife enrolled in school)
Clothing: $150
houshold misc:$100 (cleaning supplies)
Medical: $150 ( an average of out of pocket dental and health bills from last 6 months)
Renters insurance: $50 a month
Equipment insurance: $50 month ( for my wife's tools of trade that she needs for school)


Now here is where I am consed:
1. Does IRS installment plan payments count towards disposable income? We have a $500 payment we make each month.

2. Rent - our rent is signifigantly over the allowed amount in our county. The lawyer we spoke with yesterday informed us that that is not an issue due to the fact we are a ch 7 business debt case?

3. Car payment - we are attempting to buy a car. How much is an allowed payment? $250 , $350, $400 ?

4. Education: The lawyer we spoke with said that trustee's do not look favorably on education cost and that it would be difficult to even get $100 a month allowed.

If you can review my list and critique it that would be very helpful. Please also let me know if you can find any areas we are missing expenses.

We are located in Riverside county, Ca. We are willing to move to San Diego county if necessary to qualify for higher exemptions.

TIA!

[lrprn]

We are attempting to file chapter 7. Over 50% of our debt is a business debt. We are trying to avoid a ch 11.

Are you trying to avoid Ch 13? Or did you really mean avoid Ch 11?

Household of 2
Income: $2632 bi weekly

Is this income gross or net? Bankruptcy uses gross income, not net.

By the way, since you have more than 50% business debt, you don't have to complete the Means Test.

To look for additional expenses, pull out your check registers and other financial papers to look for irregular and less frequent expenses. Think HOA fees, property taxes, insurance payments, etc. Also take a look at the exemptions list here - http://www.goainc.com/fraley/calcula...alculator.html

1. Does IRS installment plan payments count towards disposable income? We have a $500 payment we make each month.

If you mean can the IRS plan payment you make reduce your disposable income, then yes. The IRS plan payment counts as an expense.

2. Rent - our rent is signifigantly over the allowed amount in our county. The lawyer we spoke with yesterday informed us that that is not an issue due to the fact we are a ch 7 business debt case?

Since you don't have to complete the Means Test, this is much less of an issue than it would be. Still, you may need to defend the rent amount to your local trustee and/or the US trustee if it's questioned. They could ask you why do you have to pay more than the average rent in your area? You need a reasonable answer.

3. Car payment - we are attempting to buy a car. How much is an allowed payment? $250 , $350, $400 ?

Most trustees will accept a "reasonable" car payment for a "reasonable" car. How much is "reasonable" for both depends on your local court's customs and your trustee's interpretations. No trustee is going to be ok if you go out and buy a Ferrari or any other luxury car right before filing. Your lawyer can give you an idea of what cars and car payment are likely to be ok in your case.

4. Education: The lawyer we spoke with said that trustee's do not look favorably on education cost and that it would be difficult to even get $100 a month allowed.

Need more information....what kind of education are you talking about? Who is the education for? How much is the amount needed and for how long?

If you've only met with one lawyer so far, with a complicated case like yours, you really need to meet with at least 3-4 experienced bk lawyers who file business-related cases like yours frequently. Expect to pay a higher fee, but you need a lot more legal expertise trying to file a Ch 7 too. The right bk lawyer will be worth every penny you pay him or her.

[pileated]

Do you pay for health insurance?

Did you include current taxes?