Income/Expenditures

[dmg]

My attorney mailed us our packet of information that was sent to the Court. In the packet, he asked us to go through everything and to make changes if necessary and get back to him.

On the Expenditure sheet, I'm not sure where he came up with some of the figures. He showed our expenditures at $2208.00. My husband's paycheck that he comes home with is 2,059.00 (although he should be getting a raise next month, but I'm not sure how much the raise will be for.)

I went over the form and revised a few expenditures (he had grocery at $600/mo, and I changed it to $400/month) and such like that. It now shows our expenditures at $2115.00. My question is, this is not accounting for holidays/birthdays or any emergency that may arise.

Should I have just left it at what the attorney said, instead of pretty much subtracting $100 worth of expenditures. I just thought that how could we show that much expenditure if we don't get that much money a month.

- Debbie.

[Whittio]

Are you currently charging anything per month? Even though you spend more then you make, if you're charging any part of that, you have to take that into account too.

The expenditures take into consideration annual expenses too, it's averaged out per month. Like my mom has to have her car smoged every other year at $75, and registered for $65 a year and she buys a new PAIR of tires for $150 every year, all those averaged out is an expense of $21. a month that we added into her "auto expenses".

Either way, you don't have any disposable income, so you should be fine. It's better to have low estimates on your expenses, then to have them too high and raise red flags all over the place!

[dmg]

No, as soon as we saw the attorney for the first visit, my husband and I got rid of our credit cards. So, we are not charging anything.

[Whittio]

Perhaps he used the federal guidelines for your family size?

I have seen posts here that talk about what you WOULD spend on these items IF you could/had the money. Like if you didn't have to pay your cc debt, you COULD spend $600 a month in groceries?

Although I don't see how you could only be spending $400? Is that for one person? I just went shopping yesterday, a weeks worth of groceries for a family of 5, $229.43. That's on TOP of spending $200-$250 a month at Costco! :s

[dmg]

We spend an average of about $100/week for a family of 3. Our money is tight until the end of the month and this week we only spent $50.00, but I still have a few other items that I have to purchase. I just didn't like the price at the store we went to and figured we could wait.

We have been trying to watch how much we spend on items, so we have been cheapsaking everything and trying to hold back as much as possible.

[Whittio]

So if you HAD the money, you wouldn't cheapskate everything then right? So wouldn't it be correct to assume you might spend as much as $600 a month.. That's probably why the attorney upped the amount.. (just my assumption though)..

Fact still remains that what ever you change it to, you're still going to have more expenses then income right?

I commend you on your spending. I am very frugal with 90% of my spending, but groceries, I just can't run around to every store to save $5.00.. I shop at Food 4 Less, which is the cheapest in my area, but I have to drive 45 minutes to get there. Everything is so far away up where I am, that it's not worth my gas & time to shop multiple stores. :s

Hopefully after your BK, you won't have to be so frugal with shopping. That's one thing I have always said we would never do without. We don't clothes shop that often, we don't eat out that often (maybe once every 2 months or less, except the occasional $10 at McDonald's etc), but I hate scrimping on everything. You've done well to stay within your budget on that.

[hhou812hh]

So if you HAD the money, you wouldn't cheapskate everything then right? So wouldn't it be correct to assume you might spend as much as $600 a month.. That's probably why the attorney upped the amount.. (just my assumption though)..

Fact still remains that what ever you change it to, you're still going to have more expenses then income right?

I commend you on your spending. I am very frugal with 90% of my spending, but groceries, I just can't run around to every store to save $5.00.. I shop at Food 4 Less, which is the cheapest in my area, but I have to drive 45 minutes to get there. Everything is so far away up where I am, that it's not worth my gas & time to shop multiple stores. :s

Hopefully after your BK, you won't have to be so frugal with shopping. That's one thing I have always said we would never do without. We don't clothes shop that often, we don't eat out that often (maybe once every 2 months or less, except the occasional $10 at McDonald's etc), but I hate scrimping on everything. You've done well to stay within your budget on that.

I agree with you on a lot of these points. Sometimes going to all the discount stores and buying cheaper products costs more in the long run. Gas for me is $3.00 a gallon already. I argue with my girlfreind about going to costco to save money, but paying a fortune to get there since it's much further then my local supermarket. ;)

[dmg]

It wasn't that I was going to run around to various stores. It's just that I decided not to worry about it right then and figured that I would need to go to Walmart sometime during the week. Once I go, then I'd pick up the other items that were needed (water, cat food, ...) I don't think it's worth driving across town to various stores. But, I do pass other stores on the way to taking my husband to work or our daughter to Pre-K.

We have an older SUV that is a gas hog. I have been trying to watch how much we drive since we fill the tank up about once a week and it's $40 each time.

[Lightning]

As long as your expenses are within IRS guidelines, don't worry about it.

Remember, you bankruptcy expense sheet is not a budget. If your BK expenses put you in the hole by several hundred a month, you have a problem. After you file, you won't have any credit to supplement that. That means you'll either have to earn more money buy getting better or 2nd jobs, or you'll have to cut your expenses.

Your inflated expenses will help you get rid of your debt, but they obviously aren't accurate.

[dmg]

Your inflated expenses will help you get rid of your debt, but they obviously aren't accurate.

I don't understand this comment. Are you saying that my expenses that I reported are inflated and aren't accurate?

[edwards2]

I was wondering the same thing about the groceries in particular. There are 3 of us and one is a male teenager who eats in weight in groceries. We spend $400 a month easily. I generally use coupons but I too am not going to drive all over town to save a few dollars. Fortunately were we live there is a Walmart Superstore, Kroger, Schnucks and Target so we have a lot to choose from. I look for sale meat but I dont spend hours in the grocery store like some people I know, looking for every single bargain. I wouldnt stress over the expenses your attorney listed; I did at first too but then I realized they were allowable expenses. Just make sure you can justify what expenses you do list. Good luck.

[Lightning]

Yes, the expenses you reported are inflated and inaccurate if they are more than your income.

How do you plan to cover that overage every month if you don't have a credit card to charge it to? Do you plan to borrow money from friends and family every month?

If you don't charge that overage, and you don't borrow it from someone, then you'll have to spend less in at least one category to bring your expenses below your income. Thus the expenses you're reporting are inflated and inaccurate.

[dmg]

They are an average. For example, I reported $200/month for utilities. In the summer, it is normally above $230 or so, but in the winter is is around $150 since we are in Florida and don't use the heat much.

Depending on what the bills are at the time depends on what we spend and what we need to watch. I used estimates. My husband gets paid once a month, so at the end of the month, we have to use less and less to make it by.

[mrgg1111]

Income/Expenditures

does the 341 meeting require receipts or proofs of expenditures? Like rent, auto insurance, gas for the car, or ultilities? Do they need to see the contract of the apartment/house rental, or a copy of the check for the rental?

[StaciMM]

I generally am able to keep our grocery budget (for 2 adults, 3 kids ages 3-7) under $90/week, plus $15-25 for misc. non-food items. I don't drive around, but I do purchase store brands alot. We don't buy alot of meat, get chicken breast only when its on sale. I make a list of 7 days worth of meals for the week ahead, note what we have and what we need. It isn't all that healthy, but we do alot of hamburger/tuna helper, pasta & rice, and its almost always cereal for breakfast. My oldest 2 eat lunch at school ($64/mo during the school year). I use frozen veggies, and there is generally enough in a $1 package for the 3 of them to share w/ dinner. The weekends are the hardest-my husband wants to snack & do lots of junk food but we have to limit that.