Expenses listed in BK versus bank statement

[jp2861]

When I list my monthly expenses will anyone want me to prove those amounts? Example would be my electric bill. Under normal living conditions I know it will be higher than what it shows because I've cut down on the AC. Clothes is another area. I don't buy clothes on a regular basis but I'm sure I spend $100 month if I average it out. I don't keep receipts so will anyone question my numbers? My car is 12 years old and I will need tires within the year, brakes are squeeling, needs a tuneup, and oil changes. I'm figuring around $150 a month easily if I average it out. Does that sound too high. I guess what I'm asking is when I swear to these figures will anyone question my integrity and put me in a position where I have to somehow prove the numbers. I wouldn't be able to validate any if that happens.

Also, pertaining to my bank account. Will anyone tear into my account and scrutinize every penny I've spent? I've had some gambling issues and definitely "wasted" some money in casinos. I'm a little nervous about how to tell someone I couldn't pay some of my bills (cash advances on CC's) because I was out screwing up at a casino. I have a few hundred this month I can't account for because it was fed into a slot machine. Is this a reason to dismiss my case? How much of a problem am I going to have with certain monies that were lost and now unaccounted for. It's not like I took the money out have it stashed away.

I'm assuming the trustee will be the first to review my file for fraud or abuse. How clear cut is this? Will the trustee dismiss my case if he feels I squandered away money when I could have a paid a bill? How much subjective power does the trustee have in determining whether the case moves forward or is dismissed? Will he/she dismiss my case if they feel I was irresponsible due to gambling.

I also have quite a few balance transfers this year, as well as cash advances. None will be within the 90 day period though, because I haven't touched my cards. Will the trustee look at these transactions and make a determination? Or will he/she move forward and let the creditors deal with filing an objection.

If I understand correctly, I have to first get past the Trustee and then part 2 is worrying about creditors that I'm sure will file objections. Am I correct in my thinking that there are 2 walls I need to climb over before I start seeing any light again?

I'm below the median and don't have any assets or secured debt. It's all credit card debt. I'm just a little concerned that a trustee has this wand that they subjectively pass over my file and make a call based on whether they feel I should be filing or not. I'm hoping this isn't the case and it's more black and white than I'm perceiving.


Thanks!

[Boscoe]

First some questions:

--What state do you live in?
--What is your income for last 6 months?
--Have you met with a couple of attorneys yet?

You do need to have some basis for your expenses, but your attorney can help you out with that.

[jp2861]

Nevada

12K Gross - I'm assuming my expenses are bumped up against my Net pay though right? Obviously I can't pay expenses from money that has already been deducted for taxes.

Yes I met with a few but got a different story and reasoning about different issues from each of them. Which is why I have the questions. It seems that 2 debtors with identical situations could possibly have different results. It's hard getting black and white answers from these lawyers which is a little scary. The last one that I talked to seemed like a straight shooter but was vague on the process of creditor objections.

[keepmine]

Things like utility expenses are easy to prove. Keep your bills and bank statements showing what you spend. On an older car, of course you'll have more maintance issues. Some trustees are more picky than others and might not deviate from IRS standards. Clothes is another matter. $100/month for a single person is high IMO. For a couple or a family, probabbly not.Your lawyer will advise what is acceptable.
Creditor objections are rare. The more time you put between cc usage and filing the better. They must have a specific reason to object. jp owes us money is not good enough.
You need to put pin to paper and actually fill out the I and J schedules and see where you stand.

[jp2861]

I did both schedules.

Is the figure that I use on Schedule J going to be the exact figure allowed from the IRS Standards or what my estimate is? Example: Transportation in the IRS site says $338 for 1 car for Operating Cost. So is that the number that everyone uses or do I need to guessimate what I think my costs are?

As far as utilities: My bills for the last few months are lower than what they should be because I scrimped to save a little. So did I hurt myself by doing this? I ran the fan alot instead of the AC to save so my bills will look lower than what they would if I lived comfortably and wasnt trying to pay credit cards. If that makes any sense. If I didn't have to worry about CC bills my actual electricity bill would probably 30 - 40% higher than what my bills show.

The IRS standards says food and clothing allowable for bankruptcy for my income is $325 a month. I spend more than $325 on food alone and I don't eat big, but the IRS says only $257 is allowed for food.

The items on Sch J aren't listed the same as the IRS allowables. Do I lump items together and mix and match the best I can?

There's a sticky that says it has instructions for filling out the forms but none of the links work. Is there anothe link for tips and guidance on how to fill out the forms and what each item is asking for in laymans terms?

What I need is some guidance on what numbers are acceptable and what I base these numbers on.

Also, if I feel a realistic number is $XX am I going to asked to validate it somehow or is it a judgement call on the part of the lawyer? I read somewhere that the lawyer has to sigh saying my numbers are valid. Is this true? Will the Trustee still question my numbers or take the lawyers signature as proof that the numbers are valid?

I'm sorry for all the questions. This is confusing and driving me nuts.

[HeatherB]

I'm sorry for all the questions. This is confusing and driving me nuts.

When my lawyer was helping me come up with figures, if I came up short in one area.... and ahead in the other, he would up the shorter one to try to cover my costs.

Not sure if that helps. Just thought I would throw that in there.

[lrprn]

Trustees don't question expenses that look too low. They question expenses that look too high compared to what they are used to seeing because they think you may be artificially inflating your costs to hide disposable money.

If you can justify high expenses by showing receipts or because you have a situation that makes the higher expenses normal in your situation - for example, you have ongoing medical problems that require expensive medications or your job requires you to wear suits so your average clothing expenditures are higher than someone who works in jeans and a T-shirt - then the trustee should be ok with that.

[rilbrianne]

Trustees don't question expenses that look too low. They question expenses that look too high compared to what they are used to seeing because they think you may be artificially inflating your costs to hide disposable money.

If you can justify high expenses by showing receipts or because you have a situation that makes the higher expenses normal in your situation - for example, you have ongoing medical problems that require expensive medications or your job requires you to wear suits so your average clothing expenditures are higher than someone who works in jeans and a T-shirt - then the trustee should be ok with that.

You've always got the best advice. I didn't have to prove any of my expenses. But I agree, if they are a little higher than normal, bring some receipts just in case the trustee needs verification.
Good luck and God Bless.