Determining if I would fall under ch 7 or 13

[chucko]

Is there a way I can reasonably determine myself which of these categories of bankruptcy I would fall under?

What calculations can I make to figure this out?

What if my living expenses + current credit card payments = my monthly take home salary give or take $100.

I rent an apartment. Is there a dollar figure that the trustee could claim is unreasonable to pay for rent? I pay $645/month, and yeah I could have found an apartment for $550 or so, but they are dumps. Is that taken into consideration?

I really need some help with this before I decide what to do. I am barely getting by each month, not being able to save anything.

Here's an example:
What if my take home pay was $2400/month.

My living expenses total $1700
Credit card minimums total $500-$600.

That total is $2200 or $2300. Would I be able to get a chap 7?

Thanks a lot, reading this board has been very helpful.

[Cmonlottery]

After chapter7 you wouldn't be paying the credit cards so you would have around $700.00 disposable income. From what I understand that would probably put you in a Chapter 13. Expenses are the key. Make sure you account for ALL expenses you can think of.

[chucko]

What would difference need to be to qualify for Ch 7?

What if my expenses were $2100 out of $2400 before credit card payments. What is the dollar amount or percentage they want?

Looks like ch. 13 for me, but maybe not.

[tdooders]

They are looking for $100 or less of disposal income after all monthly expenses.

[Teri]

that's what I thought at first Chucko, but it really is easy to up the expenses...think haircuts for the family 4-6 times a year, eye exams, dental exams, toiletries, cleaning products, clothing, shoes, work lunches, school lunches for the kids, car maintenance, maintenance on your home.....anything you used to put on the credit card....it really is way up there when you stop and think of everything

[edwards2]

Ditto. By all means list EVERYTHING. You will be surprised how it really does add up. When I first started doing ours I thought we were in a Chapter 13 but I forgot about homeowner's dues, haircuts, lunches, etc. and checked with what is allowed based on IRS standards. Each state has exemptions so you should check those specific for your state because they are not all the same. We made the supreme mistake of not listing all of our expenses and there was a miscommunication between the attorney and myself about what he actually submitted. I was frantic about an expense I knew I couldnt justify - turns out I was wrong about the amount. Trouble is I didnt discover that until we didnt submit all of our additional paperwork and now we have to do it again and meet with the trustee with the documents. So learn from me...submit everything and have your attorney check it.

[chucko]

Where does car payment fall under this? Is this part of my monthly expenses? What about rent? That has to qualify for a legitimate expense. Both my rent and car payments are loans of a sort, so how does that fall under expense but credit card payments don't.

[lilkim]

chucko, i would imagine that the car payment would be considered as monthly expense. but maybe one of the moderators can answer that for certain..good luck to you!!!

[Teri]

the reason your credit cards don't count is because you will be writing them off in bankrupcy - thus not paying them anymore

[davidb81]

here were my expenses for example
rent 650.00
utilities 100.00
Phone 65.00
Auto 305.00
auto insurance 47.00
food 220.00 (yeah right)
home repair maintenence 50.00
laundry 30.00
auto maintence/fuel 120.00
entertainment/leisure 75.00
cable/internet 70.00

[chucko]

Is there a value that entertainment/leisure is an accepted expense? I currently don't have any value in my expense calculator because I thought they would negate it anyway.

[davidb81]

Im sure, it depends on where you live probably. the trustee didnt even question mine. But another trustee in a different state might.

[edwards2]

Someone on this forum had a great post and the quickest ways to get your case dismissed and one of the items was entertainment. Keep it as low as possible. Obviously no one keeps receipts for fast food or movies. We listed $125 and on this guy's forum it said dont list entertainment higher than $100. Too late. We listed high medical and dental - because we have it, $200 for clothing for 3 people - son has to wear dress clothes to school, etc. There is an IRS guideline for expenses but your best bet is consult an attorney and go from there. Good luck...and LIST everything no matter how trite you think it is - it counts.