Expenses...What is Allowed?

[SJF75]

Our attorneys paralegal says that our expense look "okay" but may need some tweaking and we will discuss it at our next meeting but I was hoping to get some input before then...
This is what we actually spend for a family of 4, but I am still not sure of all of this is allowed on the schedule J.
Mortgage = $2388
Homeowners insurance = $52
Home maintenance = $280 (includes lawn and pool care)
Payment on home equity loan = $150
Utilities = $350
Water, sewer, garbage = $320
Phone, cell phones, Internet, cable = $560
Home alarm monitoring = $25
Food & housekeeping supplies = $1300
Child care = $555
Clothing, laundry, dry cleaning = $400 (2 rapidly growing boys)
Medical / dental (including braces) = $450
Transportation = $650 (3 vehicles / long commutes)
Entertainment = $300
Kids sports = $200
Car lease payment = $370
Truck loan payment = $705
Vehicle insurance = $370 (One teenage boy driver)
Pet care = $120 (two big dogs)
Personal care = $100
Total = $9645
Our monthly income on Schedule I is $9808. If all those expenses were acceptable does that mean we qualify for a Ch 7 with only $163 left over?

Also I did not account for:
Student loan payment = $120
Tax Debt Payments = $150 ($4000 total owed)
Unemployment Overpayment repayment = $55
Do those payment get included into the expenses category since they are not dischargeable?
As always....THANKS to everyone on this board for the invaluable guidance and support!!

[Chrysalis]

Have you done the Chapter 7 means test? If your income over the past 6 months is above the median for a household of your size, you will have to complete the means test to see if you qualify for Chapter 7. On that means test, only certain expenses qualify -- and no, all of yours don't.

Sorry if I'm misunderstanding your question.

If I'm not -- check out the calculator here:

https://www.legalconsumer.com/bankruptcy/means-test/state.php?st=LA

[leonel9]

On that means test, only certain expenses qualify -- and no, all of yours don't.

^ This is key. Many of the expenses listed are appropriate for Schedule J, but have nothing to do with the means test (entertainment, sports, cell phone, etc.).

To me, some others seem a bit high ($320 for water/sewer, $560 for phones/cable, $705 for just 1 truck?). While I don't live in a family of 4, I'd ask the attorney/paralegal what they meant by "tweaking." Your means test and Schedule J should both send the message that you don't have sufficient income to repay in a Chapter 13, or alternately, calculate how much you are able to pay in a Chapter 13.

Regarding the non-dischargable items, I would include them in your schedule.

[SJF75]

I'm sorry I should have clarified more. My husband is not required to take the means test due to the Disabled Veteran clause, but I am. When I take the means test alone...using only my income I pass using the standard deductions. Then when my attorney moved on to the I & J forms, he added my husbands income back in. After all that our income is $9808 per month.

All the expenses I listed were only accounted for on the schedule J and yes I know they sound high but they are accurate. Last month our water was $110, sewer $80 and garbage $85 however in the summer our water increases because of our pool. We have 4 cell phones and that bill alone is $300/month and yep my husbands truck payment (1 truck) is in fact $705. We can prove all our expenses I am not worried about that. My question was....are all those expenses allowed? If so then we will probably qualify for a Ch7. If our current expenses are considered "way too high" then I guess we need to look at cutting back (cable, sports, entertainments etc) to afford a Ch13.

I guess what I am wondering is...does anyone have any relatable experience with similar expenses and qualifying for Ch7?

[LadyInTheRed]

The water bill is the water bill. The trustee is not going to argue with a water bill you can document.

Unlike the means test, there is no bright line about what is allowed on Schedule J. You are allowed reasonable and necessary expenses. A trustee could argue that cell phones for your kids is not necessary or that a $705 truck payment is to high. But, I am not sure they can complaint about a secured debt payment. He may also not like pet expenses, which is the case with some trustees. If the paralegal says you need a little tweeking, that is probably all that is needed. Work with your attorney. S/he knows what the local trustee is likely to object to. All we can do is guess.