Are these valid monthly expenses?

[ajm]

Probably have to file Chapter 7...I'm looking for a way out but can't seem to find one. Our income is down $45K this year (both in real estate or mortgage industry)....we made 2 late payments on 3 different credit cards and now the interest rate is so high (33%) that we'll never be able to pay off $50K in debt. I know a lot of us are in the same boat...it's so hard and depressing.

Anyway, was wondering if the following expenses would be viewed as legitimate by bk court. They are real expenses but not sure what the parameters are:

1. Daughter's dance school - $385/month. She's a competitive dancer and takes off campus physical education at the dance school. Her middle school is a public school.

2. Little expenses that we pay for my father in law like picking up groceries for him, his netflix, and the money we spend on gas/tolls to take him to the doctor 3 times a month. We don't keep separate books to show what we pay for him, we just do it.

3. I give my mom about $25/week to watch my daughter a couple days a week. I know it is a silly amount, but she is elderly and proud and needs the money. She won't take it unless she earns it, but she can't live without it. Again, no receipts or proof. I just give her the cash.

4. Housing repairs...we live in an older, 1300 sqft house. We haven't had money to fix the roof which is leaking, or the fence which is falling down, or replace the door that was kicked in. They are legitimate repairs that have to be made. Can I do anything with this? How about exterminators?

5. Dental work... I charged 2 root canals and crowns and need one more crown. Husband needs some work as well. How do I account for the dental work we're going to get once I stop paying BofA $500+/month in interest charges?

Guess the main question is this... we make $70k/year and are in the red every month by a significant amount. Once we stop paying credit cards, we'll have the money to do some of the important things that we haven't been able to do. Not sure how to handle it.

Thanks in advance.

[JRScott]

The dance would be considered a luxury.

4 and 5 are definitely allowed expenses.

2. I just count his food as part of your food allowance , and the gas you use to haul him there and back as part of your transportation cost .

3. Day Care expenses I think are allowed. It is a question to ask a lawyer about but I'm sure you could include this as a day care expense.

[HHM]

1. Toss-up. Depends on the trustee. I know the attitude of "anything for the kids", but you really need think about whether you can afford this expense, or you need to cut an expense elsewhere.

2. Unless he lives with you, no. Again, if you can't afford to take care of yourself, you probably should not be spending money on others.

3. Baby sitting is usually an ok expense.

4. Those are "one time" expenses, not regular monthly living expenses, so no, expenses for those types of items don't count. Routine repairs, i.e. air filters and regular maintenance is ok.

5. You can class this under medical expenses, but again you will face the line between regular expenses (which count for BK) and one time expenses which do not.

It's good that you are looking at your budget, but instead of looking at your budget in terms of how to qualify for BK, look at it in terms of how you are going to meet your expenses. BK does not magically solve your budget, sure, it gets rid of debt, but if you don't have enough income coming in to pay your expenses, you will end up right back here.

[mmenz22779]

#1 maybe able to keep, but it is not a nessessary living expense for the health and well being of your family. Tuff one

#2) unless your father in law is your depenent I doubt that would pass

#3) You are paying a family member (this could be a no no) but it is for daycare so that would be ok (the daycare)

#4) Housing repairs unless they are on going and above the normal you would have to prove it that it is a monthy debt. (the pest man I am sure that is ok)

#5) dental work is ok just keep you recipts.

with the extra money you are better off to do the following...

stop paying your mom for daycare and enroll your child in a real one (this both gives you more expense write off, gets your mom out of the loop) you can always "CANCEL" you daycare after you file if it is not "working out".

Claim your Father in law as a dependent if you can. This will help out with means test and you can get other write offs.

JMHO



Housing repairs get what you need to get done and keep the recipts.

Get the dental work done keep recipts.