Attorney Fee

[ejny65]

Hi everyone:
Our schedule J leaves us about $30 disposable a month. BUT, I really don't have any money to pay attorney.
I need to get a part time job for a while to pay her.

Will the additional money, even though it will go to my attorney become a disposable and push me into Chapter 13?
Atty needs $2400, including filing fee. If we divide it to 12, it is $224.30 She wants the money at one payment, and we need to file soon.
Is there any place for this expense in Schedule J?

[HHM]

If the attorney wants the money in one payment, what makes you think she will accept monthly payments. I think what your attorney is telling you is that she WILL NOT FILE your case until she is paid in full (which is normal).

You can make monthly payments to your attorney, but until the attorney is paid in full, your case is not filed.

[ejny65]

HHM, Thanks for reply, yes she won't file until she gets paid. But the question here is that:

"Will the additional money, even though it will go to my attorney become a disposable and push me into Chapter 13? Is there any place for this expense in Schedule J? "

[HHM]

HHM, Thanks for reply, yes she won't file until she gets paid. But the question here is that:

"Will the additional money, even though it will go to my attorney become a disposable and push me into Chapter 13? Is there any place for this expense in Schedule J? "

No, it will not be a problem, because there is no need to list it on Schedule J.
(1) Attorney expenses are allowed and no one in the BK system cares how you paid your attorney.
(2) Schedule J is a list of your CURRENT expenses, once your attorney is paid, that is no longer an expense, thus no need to put in schedule J

You are over thinking this.

[diviaruba]

I think the OP is concerned that the income from the part-time job, presumably at least $224 per month to pay the attorney, will push them over the means test and/or up the Sched. I/J disposable income calculation, and hopes that somehow attorney expenses will be deductible against that disposable income.

Unfortunately, they will not. The income you are showing will be calculated as gross income on the B22 and the Schedule I, but unless there is a corresponding increase in other expenses, it will flow through to disposable income. There is no "free pass" for attorney fees.

[ejny65]

Exactly. thank you! So does it mean we should cut from grocery & medical expense, etc..? and forget about a part time job. Right?
But if I cut from expenses to pay atty, it means a decrease in my expenses and leaves me with desposable income in shedule J.
Help!

[diviaruba]

Exactly. thank you! So does it mean we should cut from grocery & medical expense, etc..? and forget about a part time job. Right?
But if I cut from expenses to pay atty, it means a decrease in my expenses and leaves me with desposable income in shedule J.
Help!

Well, no one can say exactly how you should play this except that expenses are much more fluid and subject to interpretation, whereas income, especially wage income, is a matter of record.

As was pointed out, no one is going to ask you how you paid for your attorney. If you spend a little less on clothes, food etc. for a few months, those expenses will still be there after you file, right? There is much less scrutiny over "reasonable" expenses for these standard items than some on this board would have you believe. In other words, you don't have to produce every grocery receipt for the last six months when completing your forms.

If you can find some way to squeeze the attorney fee out of your budgeted expenses without adding to your gross income, that would be far more advantageous.