401K Question

[accentone]

Hello, again.

I'm starting to seriously put together all my paperwork, filling out the questionnaire given to me by my lawyer. Here's my concern: When I add up the income for husband and myself, the lawyer said I need to ADD BACK IN the 401K amount that they take out of my husband's pay (about 5%). When I do that, it appears that I have around $700.00 over in the budget. What do I do about that? Is retirement not considered an expense? Now I'm worried I may have to go into a chapter 13. I really don't want to do that. The thing is, my cc bills are more than the supposed $700.00 left over, so I would still be behind, anyway.

Anyone with suggestions, I would greatly appreciate it.

Thanks.

[HHM]

Basically yeah, the 401K contributin is not an expense, so if you file chapter 7 and you are showing that you have $700 per month in excess income (or for that matter, even $200), you will be placed in a chapter 13.

[Lightning]

A 401k contribution is not an expense. You're putting money in a savings account for your future. When you declare bankruptcy and claim to be completely broke and insolvent, you can't turn around and save 5% of your income.