More food pre-planning questions...

[Diesel73L]

We're meeting with the attorney on Saturday but I can't leave well enough alone and am now pre-occupied with coming up with a plan for pre-planning our food and supplies purchases in the eight months leading up to when we'll file. Obviously we want to buy as much as possible in order to prepare for life after discharge and dispose of any excess cash that would otherwise need to be exempted. The question is what numbers do we use? I hear a lot of talk on here about IRS standards, but when you go to the IRS website you see this statement:

Disclaimer: IRS Collection Financial Standards are intended for use in calculating repayment of delinquent taxes. These Standards are effective on March 1, 2011 for purposes of federal tax administration only. Expense information for use in bankruptcy calculations can be found on the website for the U.S. Trustee Program.

That takes you to the UST website where the tables are split up by family size and gross income.

The IRS number for food for a family of three (regardless of income) is $639 a month. Looking at the UST table, for a family three in the income bracket we'll be in until my wife loses her job, the number for food is $754. Essentially I'm looking for a maximum number to not exceed in terms of grocery bills each month so as not to make the trustee think we're trying to pull something. Which one can we use? As it is we've been averaging about $500 a month for our family of three, so either way, maxing out the allowance should enable us to buy what we need week to week and set aside a lot for the future each week. We've also been slacking on coupons, so if we ramp that up we can really stretch those dollars.

[AngelinaCatHub]

Yes diesel, stretch those dollars. As much long term storable stuff as you can. Be sure to eat some of it as if you NEED this food due to any unforseen reason, you have to be able to like eating it. If you are doing 500 on normal months, 750 is not out of line. Don't forget other exempt stuff as bar soap (tradeable) dish soap, paper goods, although dollar bills can be used as toilet paper if this inflation keeps up, and any exempt items that can be bartered. Toothpaste and brushes, other needed things like feminine paper products, etc. 'Hub

[AngelinaCatHub]

Another suggestion if you can find them, rolls of dimes before 1965 are 90% pure silver and small enough to trade. Face value is what you would declare, but silver value is far higher. Those dimes to purchase are like 5 to 10 dollars now.

[tobee43]

also, i must mentioned this because we had this experience during our 341.

food costs are forever rising. i remember the trustee saying to me...you feed yourselves on this????? please don't let my husband see it!! i actually went too low, but after all these years i'm use to making one chicken on sale for 3 bucks which makes 10 meals for two.

with a new baby don't forget it can also go under other costs or expenses.

[keepsmiling]

One other thing to keep in mind- you mentioned stocking up on baby food. Your little one won't be eating baby food much past a year.

[Diesel73L]

One other thing to keep in mind- you mentioned stocking up on baby food. Your little one won't be eating baby food much past a year.

LOL...that's why I don't actually make the shopping lists-I'll leave diapers, baby food, and any other baby supplies to the boss. I'm pretty good at knowing what non-perishables and frozen goods to stock up on though. There are few things more comforting than looking at the pantry and the chest freezer when they're both full. Except maybe looking at the full woodshed ;) I wonder if firewood would be another "stock up" item that would be permissible? We burn about five cords a year-I am just now processing next year's supply (firewood needs to be split and stacked out in the open for at least a year so that it dries properly). I find the wood where I can for free, haul it home, cut it to length, and split it all myself. I've never bought firewood, but I bet if I contacted a local firewood seller (there are lots around here) and told them I wanted five cords I could get a pretty good price-maybe as low as $100 a cord. That way I'd be two years ahead on wood between the five cords I found for free and the five cords I paid for.

[basketsbears]

We met and retained our attorney today. I have $5000 student loan refund and approximately $2,000-$2,500 tuition reimbursement from employer coming in this month. She suggested some other things to do with $ before we file, of course, school supplies, also things like paying for auto insurance for a whole year, food (as you have done), any repairs around the house and making house payments, hold money if we pay income taxes or extra car payments.

Sounds like you have a great plan!

[ValleYum]

That takes you to the UST website where the tables are split up by family size and gross income.

The IRS number for food for a family of three (regardless of income) is $639 a month. Looking at the UST table, for a family three in the income bracket we'll be in until my wife loses her job, the number for food is $754. Essentially I'm looking for a maximum number to not exceed in terms of grocery bills each month so as not to make the trustee think we're trying to pull something. Which one can we use? As it is we've been averaging about $500 a month for our family of three, so either way, maxing out the allowance should enable us to buy what we need week to week and set aside a lot for the future each week. We've also been slacking on coupons, so if we ramp that up we can really stretch those dollars.

I'm confused. But I have been sick so I may just be going crazy. LOL

I have never known the food allowance to be 'income based' on the UST site. For a family of 3, the food portion of Food, Clothing and Other Items is $639. Including food with all the other sub-categories (housekeeping supplies, apparel & services, personal care products & services and miscellaneous) it is a monthly total of $1171 for a family of 3.

http://www.justice.gov/ust/eo/bapcpa/20111101/bci_data/national_expense_standards.htm

We tried to be a few dollars ($10-$25) below the standards on our Schedule J unless we had iron-clad back-up (for medical or how oil heating in CT is waaay above utility standards but you'd have past bills/receipts to prove it).

This is on the UST site:

National Standards for food, clothing and other items apply nationwide. Taxpayers are allowed the total National Standards amount for their family size, without questioning the amount actually spent.

Sounds like you are doing great!! Good luck on Saturday!

[Diesel73L]

I'm confused. But I have been sick so I may just be going crazy. LOL

I have never known the food allowance to be 'income based' on the UST site. For a family of 3, the food portion of Food, Clothing and Other Items is $639. Including food with all the other sub-categories (housekeeping supplies, apparel & services, personal care products & services and miscellaneous) it is a monthly total of $1171 for a family of 3.

http://www.justice.gov/ust/eo/bapcpa/20111101/bci_data/national_expense_standards.htm

We tried to be a few dollars ($10-$25) below the standards on our Schedule J unless we had iron-clad back-up (for medical or how oil heating in CT is waaay above utility standards but you'd have past bills/receipts to prove it).

This is on the UST site:



Sounds like you are doing great!! Good luck on Saturday!

Now I get it-I was looking at old information here:

http://www.justice.gov/ust/eo/bapcpa/20061001/bci_data/national_expense_standards.htm

Thanks for posting that link!