Bank statements & expenses?

[Leftfield]

If you're filling for bk 7 then you will try, withing the limits set by the fed. or state bankruptcy law, to show no disposable income left or at least not exceeding $100.

If the trustee ask for a bank statement then the expense schedule will be worthless and most importantly contradicting to the schedule?!!! I've read many times that lawyers fill up the schedules to meet the maximum set by law and not by the actuall spending habits of their client.

Doesn't the bank statement contradicts the expense schedule?

I think there is so much freedom left in the hands of the trustee. If they feel that they can make $$ then all that I described and MORE will take place. A close and careful examination will also take place if the person's income is close to the median and they(trustee) feel they will be able to force him/her to switch. to 13 or something.

[StaciMM]

You should never lie on your petition, or to the trustee. If your attorney recommends that you alter your #'s, then find another attorney!

If you are trying to make it look like you have no disposable income, then I'm guessing you DO have disposable income and shouldn't be filing ch. 7 BK. This is not a forum to learn how to cheat-its for legitimate questions and concerns about bankruptcy.

What is recommended is that you try to consider EVERYTHING that you need to spend money on. Do you buy a book of stamps every other month? Get a hair cut every 2-3 months? Have a copay from going to the doctor every now & then?

It is easy to overlook some things, and even easier to not notice where your money goes. If you don't improve on that, bankruptcy will not cure you. You have to get to a point where you are in control of your finances.

If you lie/mislead/conceal info on your petition, expect trouble!

[Leftfield]

Not quite!

I read a post once that someone's lawyer told his client that he should not consider "cutting corners" when filling up the formes. That's something most of us do sometimes in order to pay our debts. Another post stated that the lawyer list around $50/month for clothes even though the client does not spend that much, at least not every month.

I can assure there is no lawer who wouldn't act the way I described it. And it's not fraud !!!! It's called practicing law!!!!

[StaciMM]

I think I see what you were trying to say. I'm sorry that I reacted strongly, just don't think its good for anyone to invent a budget that isn't based on what they spend. "Cutting corners" in your comment would imply that someone is rounding down on their #'s and that wouldn't be a good idea. Such as if you are in a 13 and you used the low end of everything (such as you spend $500-600 on groceries so you list $500, your utilities range from $350-400 so you list $350) you'll be in trouble. You want to use averages. And, in that situation, if you have seasonal highs and lows-like a job that pays more in the summer than in the winter-you should discuss a plan that allows larger payments when you make more, and smaller payments for your down months.

Consider this-if you have lived off of rice and beans because paying your credit cards leaves no money for normal groceries, then after filing you would not pay your credit cards and could have a normal grocery budget. You might actually eat a semi-healthy breakfast, lunch, and dinner.

For items that are occasional, you need to do an average per month. If you change the oil in your car 4X per year, at $20 each, and put $400/year into tires, brakes, and misc. maintenance then you would list $40/mo (which is $480 divided by 12).

On the other hand, if you do have $300 per month left over, after bills & living expenses but not considering credit cards, you should not inflate your expenses beyond what you need to spend. Listing $150 insurance when its $125, and $300 electric bill when its $250, listing $150/mo tithing when you haven't tithed since last Christmas... Those would be issues.

What will your pre-BK statement (bank) show? Most likely, that you are limited on cash.