Please critique our expenses - atty wants detail to see if we will qualify for Ch 7

[basketsbears]

Hi,

Well I used Dave Ramsey's monthly cash flow plan to list everything I could think of when going through checkbooks.

Please be brutal (but nice )

Charitable gifts: $50

Savings for grandkids college fund: $50

Housing:

Mortgage (PITI) $1105.
Repairs/mn 361
furniture replace 10
HOA 23

Utilities
Electric 115 (should I increase with winter coming-that's last 6 mon ave)
Water 65
Comcast 148
Cell 243 (5 lines -FIL & DD & DS)

Food
Grocery 663
restaurants 154

Transportation
Car payment 495
Roadside svc 7
Gas 453
Oil changes 30
repairs/tires 147
BMV 32
insurance 266

Uniforms 12
clothing 145

Health,dental
vision ins. taken out of pay
doctors, dentist,
optometrist, meds 300 (for 2011 we put almost $300/month into FSA, which I
won't have in 2012. We have already spent $ so that
is why I put that much)

Life ins. 50
Pets 102
Toiletries 81
Hair care 50
Our tuition 75
supplies, school 313
subscriptions 15
Prof. dues 13
Gifts (b-day &
Christmas) 145

Fun 75
Vacation 159 (based upon what we spent this past year - prob. not
allowed)
Timeshare fees 158

Aqua finance 135 (atty wants us to keep paying this)

Sallie Mae 108

RV storage 35

Tobacco 84

RN cert. test 23


My grand total is $6974.

Our income (gross before taxes):

husband - VA disability $1,064
civil service 1,034
GI bill 620

Me Job 3,700 (this is high end - more than likely is $3,550 at end of Dec, first of Jan)

total 6,418

ded. insurance 368
taxes approx 318

Net total 5,732 (or 5,584)

Well what I haven't included is the property taxes & insurance on the home that is going into foreclosure. I also have not included the green path payment of $870 per month in our CC payment, because I am hoping they will go away. Ugh!

Please let me know what you all think. Also, I realize we will need to "trim" things up a lot. When ever we get thru this, do they allow for us to put money in savings?

Thanks!

Lynn

[keepsmiling]

No gas utility bill? You managed to cool/warm /light the house/cook/heat water for 115/mon?
If so I might have to move out your way

[basketsbears]

We have no gas - all electric. I think the most our electric has been has been around $150-200????

[mountanddo]

Not sure grandkids college fund will be allowed. Might have to increase other allowances to fit that in.

[keepsmiling]

^what she said.
Are there just the two of you in the house?

[lillymarlene]

Don't think tobacco will be allowed. This isn't Canada. :-) That will have to be put into another allowance.

[mountanddo]

Don't think tobacco will be allowed. This isn't Canada. :-) That will have to be put into another allowance.

My attorney asked if I smoked and how much I spent. Didn't really look to see if there was a category for it or if she put it in my "entertainment" category.

[basketsbears]

Hi

Yes just my husband and I. We have one grandson about 3 or 4 days a week but cannot count him.

Thx for input. Please keep it coming!

We are in worse shape than I thought after doing this.

[keepsmiling]

They won't let you use your school loan Maybe not gifts either. That's a pretty good chunk of change right there- you might want to rethink those....
Not to worry yet. Worst case, go buy a new car. Many here have done that.

[ValleYum]

I don't see sewer (may be included with water)
I don't see garbage service

Groceries and eating out = the same thing to a Trustee. Food for 2 according to the national standards is $537 plus $66 for housekeeping supplies

Uniforms seem low @ $144 per year. Heck a good pair of shoes costs that and they recommend you alternate between 2 pair when you are on your feet a great deal.

Your payroll taxes look super low at less than 10%. I am sure only your salary is taxed (is hubby's civil service taxed?) but are you including federal withholding, FICA, medicare, any state taxes?

Oh and if you are claiming pet expenses - make sure you list the pets as exempt property on your Schedule C.

[basketsbears]

Hi!

I didn't think of my shoes. I have spent $200-300 on shoes for work. Sewer is with water. No garbage fees in with taxes.

I had not included local or state taxes. I will redo that. We had a refund last year, but will probably pay this year. I had adjusted my W2 so we would have more cash. When I ran the numbers on IRS site they estimated about $900.

So tuition can't come off?
Thanks again!

[helpmeout]

When I completed the paperwork, I put down the IRS allowance for a household of 3 (I have two minor children living with me), my actualy car payment and my average childcare costs for the year.

To be honest, you can forget about the $50 to your grandkids college fund. Even the charitable contributions may not be allowed. As for the food budget and the eating out, well, if you are in a household of 2, expect the Trustee to push back hard on those. Going out to eat isn't going to be allowed over a creditor getting paid. Same goes for gifts, fun and the timeshare. Car insurance will be what you pay. If the amount that you listed for gas and maintenance is over the IRS allowances for your area, expect the Trustee to lower it. I listed the IRS allowance for clothing on my paperwork, it was $209 a month. I have a household of 3. What you have listed may slide by. Vacation probably isn't going to be allowed, along with the $75 fun money. RV storage may go away if the Trusteed decides to sell it. And if I were the Trustee, I would not allow any tobacco products. That is in no way, shape or form a necessity of any kind. And any student loans won't be allowed as they will be suspended while you are in a Chapter 13 if that is where you end up.

What is the Aqua Finance? That may not be allowed as it will be discharged in the BK.

And to be honest, you really need to take a hard look at your budget and cut back on some items so that you are living within your means.

[helpmeout]

Hi

Yes just my husband and I. We have one grandson about 3 or 4 days a week but cannot count him.

Thx for input. Please keep it coming!

We are in worse shape than I thought after doing this.

Then your food budget is too high. My household is three and the amount that you listed is around what I listed (and I went by the IRS standard allowance for a household my size).

[shark66]

Timeshare fees, cell phone bill of $240, grandkids' college fund, RV storage...all non-starters.

I'd presume you'll be saying goodbye to the RV in Chapter 7. Timeshare would likely go the same way.

What is Aqua Finance? You can't include any CC and similar payments...

Good luck to us all.

[HHM]

Possible objections...

Cell bill x 5 lines, not necessary.

RV storage: what do you think will happen to the RV in BK...? If its paid for, it will be liquidated, hence, no need for storage

Sallie Mae, that is a student loan, not an allowed expense.

Gifts and Christmas, non starters

Vacation and time shares, fees. Again, time shares are assets, will be liquidated, hence no fees. vacation is a non-starter.

Really, you are paying $7$ for road side per month, I barely pay $1 (but anyway, that is small potatoes).

On the flip side
Toiletries and cleaning seem low.
For electric, average an entire year.