Determining disposable income - I/J or B22C?

[elster]

I am wondering how disposable income is determined, my actual expenses are on Schedule J but B22C computes expenses using IRS Standards.

From searching on the topic, it seems pre-2005 just I/J were used. Now I am not clear on what purpose Sched J is even serving - what happens if my real expenses exceed those listed in B22C?

[laurannm]

I am not in a Ch 13 so hopefully others with more experience will chime in. But prior to our Ch 7 filing, I did quite a bit of research as to how a Ch 13 works. From what I gathered, it varies from district to district. Some put more of an emphasis on schedules, others on 22C. From what I remember in our area (eastern MA), the emphasis was on the 22C.

[bcvw]

My personal experience is that if you are above median income, the law states that B22C determines your payment.

In my case, our I and J was several hundred dollars less disposable than the means test. The trustee did not recommend us for confirmation based partly on this. He wants us to present a budget that matches the means test. I guess that is to 'help' us get along.

[optimistic1]

Some courts look at your average income and expenses levels and determine your disposable income based on that. Others will use your current income and expenditures to determine disposable income.

If you are over median, you use the IRS standards. If you are under, you use the Schedule J.

If you are under median, and your expenses exceed the IRS standards, its ok, because its allowed.

If you are over the median, then you must not exceed the expenses set forth in the IRS standards.

[liz417]

...If you are over the median, then you must not exceed the expenses set forth in the IRS standards.

If you are, be prepared to show receipts as proof.