Means Test and Budget

[BKINVA]

Greetings ~ I'm back with another question

I'm still in the researching and education phase and I can't find an answer to my question(s) - I completed the means test that states I do not qualify for ch7- I figured this was the case($407 di). Does anyone know if the following expenses are acceptable to include in the budget as additional costs?

Pets (2) - Food, Grooming and Vet Bills (they're pretty low but I want to budget for the costs)

Tolls - It costs me an average of $7.00 per day for the toll road (I'm keeping the receipts now) or is this included with transportation costs?

Renters Insurance - I will be moving and renting (surrendering the house)

Garnishment fee - My employer charges $10 per pay day ($40 per month) for any garnishments that the payroll department processes. If I have to pay my plan through payroll deduction, can I include the cost my employer charges me?

Life Insurance Premium - I have an additional life insurance policy on my former spouse that I pay the premium on, I am the beneficiary - $53 per month - I receive a portion of his military retirement (20 yrs married active duty) I agreed to surrender my rights under the survivors benefit plan to save him $$ on the premium and he was going to get a term life policy for me in the event of his death so I wouldn't lose this income...well I fell for it and he didn't keep his promise - dumb me! so I purchased a policy and pay the premiums to secure the future income in the event of his death.

Other budget items are pretty simple and clear, but I do not know what other items I should consider and are honestly acceptable

Again, thank you!

[lrprn]

Does anyone know if the following expenses are acceptable to include in the budget as additional costs?

Pets (2) - Food, Grooming and Vet Bills (they're pretty low but I want to budget for the costs)

Whether you can include pet costs depends on your local court customs. Some trustees are ok with it, some are not. Where the trustee doesn't allow it, as long as they are reasonable hide the pet costs in your own food and personal care costs.

Tolls - It costs me an average of $7.00 per day for the toll road (I'm keeping the receipts now) or is this included with transportation costs?

Ask your lawyer about this one. Some states have a large number toll roads with considerable added costs to driving in those areas. Other states have no toll roads, so no associated costs. Keep careful records now in case adding the tolls into your expenses is challenged by your trustee.

Renters Insurance - I will be moving and renting (surrendering the house)

If you have already rented and are paying renter's insurance when you file, then those costs can be included.

Garnishment fee - My employer charges $10 per pay day ($40 per month) for any garnishments that the payroll department processes. If I have to pay my plan through payroll deduction, can I include the cost my employer charges me?

Wow. Talk about kicking an employee when they are already down financially....

A Ch 13 payment is not a garnishment - you need to discuss this with your lawyer and employer. If your employer intends to charge you $40 every month just to send your trustee a check once a month, then yes, it's a legitimate expense and can be added to your expenses.

I would get a letter from your employer stating it's their policy to charge $40/month because charging an employee anything just to send a check to the trustee once a month out of the employee's earned money is definitely *NOT* the usual practice.

Life Insurance Premium - I have an additional life insurance policy on my former spouse that I pay the premium on, I am the beneficiary - $53 per month - I receive a portion of his military retirement (20 yrs married active duty) I agreed to surrender my rights under the survivors benefit plan to save him $$ on the premium and he was going to get a term life policy for me in the event of his death so I wouldn't lose this income...well I fell for it and he didn't keep his promise - dumb me! so I purchased a policy and pay the premiums to secure the future income in the event of his death.

You are paying on an insurance premium for a person you no longer have any legal ties to. Because you have to disclose it, this policy discloses potential future inheritied income if your ex passes away while your plan is active. Get your lawyer's advice about this one too.

Deciding about living expenses are a difficult part of filing Ch 13 - that's why having a top-notch, experienced Ch 13 bk lawyer who is very familiar with what your trustee will tolerate and what he/she won't is incredibly important. It can make the difference between a plan you can live on for five years and one that makes it almost impossible to make it. Do lots of research and interview at least 3-4 bk lawyers with lots of Ch 13 experience before settling on one.

[BKINVA]

Thank you!
We have a written policy at work so I will make sure I get a copy and take with me to the attorney. I currently receive a portion of the military retirement, the life policy is to secure that specific income and yes, I thought I'd need to be a bit creative to cover this expense that I don't want to cancel. I am diabetic and I'm keeping all of my receipts for meds, copays etc. and because I must have a healthy diet and don't have much room to play with my nutrition and grocery bill - maybe this will give a little room. I plan on moving before I file, so my rent and renters insurance will be in place at the time I file. There's so much to consider and I'm doing my very best to educate myself so that I can make a wise decision in my choice of attorney. I have had one consult (2 hrs/$250) His office is outside of the courthouse for the Ch13 district office and has practiced bankruptcy law for many many years...but there's something that I don't feel comfortable about with him - he's a bit arrogant for my liking. Not a listener either. I will be consulting with at least 3 more (just as you suggested).
Thank you again!

[TooMuchCredit]

Are you over the median income for your state? If so, I think you are limited to Irs limits and the budget on schedule J doesn't matter. I am over median myself and have a dog. I am not clear how to factor in the pet expenses - $36 for a wellness plan and about $50 for food, treats toys. As a single filer I find the $507/mo IRS allowance for food/clothing/misc a bit low but I think the expectation is pet expense would be included in that. Of the $507, $277 is the amount they allocate for food. For someone like me who doesn't cook much that will be a challenge!! Maybe I'll lose some weight!

I am wonder if I can count the dogs health plan cost as a health care expense. It has saved me over the last few years from unexpected high vet bills! Maybe the additional food/clothing allowance of $18 could be claimed for the dog food/toys.