top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

How the monthly allowance be deicided in chap 13?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    How the monthly allowance be deicided in chap 13?

    Can anyone please clarify that how do they (trustee/lawyers) decide the monthly allowance in a chp 13 case?

    I thought they follow strictly the IRS guideline, don't they? Does it have anything to do with what you are current expenses are (rent/transportation/food/medical, etc)? Can anyone share some of the allowance $ numbers in your chap 13 plan? What is the total monthly allowance for transportation (gas, insurance, registration, maintenance and repair). What is the $number for apt leasing allowance (rent/utility)?

    #2
    For the most part yes, they would utilize the IRS standards to determine what is acceptable in a plan. When you fill out the schedule J, you need to be somewhat honest and fill in what you really are spending, with a little bit of cushion.

    In my state, they have their own guidelines on what they deem as acceptable or normal, and anything that exceeds it, they ask for receipts or proof.

    I have never sat down and compared their sheet with the IRS standards, and from the little I have seen, they are somewhat close to one another.

    If you are below median, you then utilize Schedule I - J to determine your plan payment, or disposable monthly income.

    If you are above median income, then you use the IRS standards to determine your disposable monthly income.

    All states and districts and trustees will have their own set policies, and you need to consult with an attorney.

    Call your local state bankruptcy court and get the names of the Chapter13 Trustees, then google them to see if they have a website, it might have lots of info on it like mine does.

    Comment


      #3
      Thanks optimistic!

      Comment

      bottom Ad Widget

      Collapse
      Working...
      X