Please help me....I feel so over whelmed right now!

[ssh4061]

I thought we might file bk7 because we fall under the median by $20 grand. However, I then realized that after paying all of our monthly bills that we would have $1300 left over each month. So I'm thinking they would make us do a bk13 with a 100% repay. Which is ok, I understand that we would have the money left over to do so. But here is the tricky party....hubby is in sales and we have to pay for all his travel expenses up front each month and turn in an expense report at the end of the month and get reimbursed. The this works out is we are out of pocket his traveling expenses for an average of 5 or 6 weeks. His monthly expenses average anywhere from $800 - $1000 a month. So my question is, would we be able to list his expenses to make our dmi lower because if not we wouldn't have enough money left over each month for him to perform his job after paying a bk13 plan. Hope all this makes sense.

[ValleYum]

Please try to take a deep breath and feel better. I don't have much knowledge about Chapter 13 but I am sure that some of our super-gurus will be here soon to let you know their take about your situation.

I just wanted to give you an e-hug {{{{}}}}! Hang in there!

[ssh4061]

Thank you ValleYum!

Hopefully someone will know the answer and will chime in.

[LadyInTheRed]

If your husband is reimbursed for expenses, the expenses and the reimbursements should be a wash when determining DMI. If you were in a Chap 13, you would have to budget to allow for him to advance the expenses or work out a different arrangement with his employer.

I'd be really surprised if a you were that far under median and couldn't file a Chap 7. Are you certain you aren't missing expenses? Think of everything you spend over the year, even for occassional expenses. Did you include car repair and registration? How about home maintenance if you own a home? If you've been not spending on things that would be reasonable expenses because you've had to spend the money on your credit card bills, think of what would be reasonable expenses if you didn't have those cc's. When is the last time you bought clothing? Have you put off dental or medical care? Don't forget to include entartainmnet expenses.

Before you decide you can't qualify for a 7, consult with a couple experienced bankruptcy attorneys.

[ssh4061]

If your husband is reimbursed for expenses, the expenses and the reimbursements should be a wash when determining DMI. If you were in a Chap 13, you would have to budget to allow for him to advance the expenses or work out a different arrangement with his employer.

I'd be really surprised if a you were that far under median and couldn't file a Chap 7. Are you certain you aren't missing expenses? Think of everything you spend over the year, even for occassional expenses. Did you include car repair and registration? How about home maintenance if you own a home? If you've been not spending on things that would be reasonable expenses because you've had to spend the money on your credit card bills, think of what would be reasonable expenses if you didn't have those cc's. When is the last time you bought clothing? Have you put off dental or medical care? Don't forget to include entartainmnet expenses.

Before you decide you can't qualify for a 7, consult with a couple experienced bankruptcy attorneys.

You are right about my husbands expenses. My head has been spinning with reading everything I have. I guess we will just need to make sure we have a spare $1000 up front to cover his expenses then it should wash out each month.

Actually we are $23000 under median. When I calculated our bills to determine DMI....no I only included normal every month bills, gas and food. But don't you have to go by IRS standards also? So I can include other things into our monthly expense outside or the "norm" bills?

[LadyInTheRed]

You are right about my husbands expenses. My head has been spinning with reading everything I have. I guess we will just need to make sure we have a spare $1000 up front to cover his expenses then it should wash out each month.

Actually we are $23000 under median. When I calculated our bills to determine DMI....no I only included normal every month bills, gas and food. But don't you have to go by IRS standards also? So I can include other things into our monthly expense outside or the "norm" bills?

If you are under median, you pass the means test without having to complete the part that uses the IRS standards. You qualify for a 7 unless the trustee successfully objects based on totality of circumstances. What would cause the trustee to object is if your actual income and expenses on Schedules I and J show you can pay something to unsecured creditors in a Chap 13. On schedule J, you would include all necessary expenses you pay over the entire year. If you pay it only once a year, you divide it by 12 to come up with the monthly amount. You are not expected to forgo a necessary expense just because you don't pay it every month. Look at Schedule J to see the categories of expenses: http://www.uscourts.gov/uscourts/Rul...006J_1207f.pdf

[keepmine]

You are allowed to use actual mortgage and utilty expenses even if they exceed IRS standards.
Here's another online calculator.

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