Question About Expenses

[gvp559]

Just wondering, in calculating our expenses, when the amount allowable by the U.S. Trustee is different than the amount it actually is, what then? For example, the amount allowed for a mortgage in Idaho for a family of four is $1115.00, but our actual mortgage is $1425.00. Any insight anyone can lend on how that is handled?

Another is on cars. The U.S. Trustee shows "Ownership Costs," First car $471.00, second car $332.00. Then it has "Operating Costs." For two cars it shows $420.00 for two cars. So, am I reading this correct in that the ownership costs are what is allowed for the payments on the cars, and the operating costs would be what is allowed for gas, insurance, oil changes, car washes, and other maintenance and repairs?

Which brings me to my last question, for now anyway. If we are allowed a total of $803.00 for ownership costs, but have our 2 cars plus the car that we co-signed for our 17 year old daughter on, and the total monthly payments for all 3 cars come in at less than the allowed ownership cost for 2 cars (approx $600.00) and can prove by bank statements that our daughter is making the monthly payments on her car and has been for over a year, will we be allowed to reaffirm on all 3 cars? I hope I am making sense, this is just so confusing at this stage, but we just want to know what to look out for when we start our consultations. Thanks again for all your help!

[lrprn]

Just wondering, in calculating our expenses, when the amount allowable by the U.S. Trustee is different than the amount it actually is, what then? For example, the amount allowed for a mortgage in Idaho for a family of four is $1115.00, but our actual mortgage is $1425.00. Any insight anyone can lend on how that is handled?

Welcome to the craziness created by our "new and improved" bankruptcy law. Thank your 2005 congressional reps for this mess.

How this discrepancy is handled depends on which chapter you plan to file - 7 or 13. Which are you hoping to file?

Another is on cars. The U.S. Trustee shows "Ownership Costs," First car $471.00, second car $332.00. Then it has "Operating Costs." For two cars it shows $420.00 for two cars. So, am I reading this correct in that the ownership costs are what is allowed for the payments on the cars, and the operating costs would be what is allowed for gas, insurance, oil changes, car washes, and other maintenance and repairs?

Yes. Also see my "craziness" answer above - same applies here.

... will we be allowed to reaffirm on all 3 cars?

Most trustees (both 7 and 13) will allow you to keep one car for each driver in your household. However, if any of the cars has a good bit of equity, all bets are off. Add this to the questions you ask during your 3-4 interviews with different bankruptcy lawyers in your area.

Keep asking questions - we'll help you sort things out as much as we can.

[gvp559]

Thanks so much lrprn!

As far as what we hope to file, not sure. Would there be a difference as to what the mortgage is if we file 7 or 13? We just want to do what is right and what will allow us to keep our house and vehicles, and put this mess behind us.

As far as my wife's car and my car, no equity at all, just some negative, but reasonable payments. We have an 06 Chevy we pay 275/month on, an 04 Saturn we pay 208/mo on, and our daughters car is an 03 Nissan she pays 120/mo on. The only car with any equity would be out daughters car, but based on nada, she has less than 3k equity in it.