Can you show a minus in your expenses?

[Leftfield]

what about cell phones, DSL internet, health club membership ... are they included in the expenses ... Simple questions that might cost me a K or 2 since I'm starting thinking to hire a lawyer .. did anybody went through this? Can you please weigh in? appreciate the help.

[StaciMM]

The spending guidelines have a 'misc' category. Cell phones, etc. would go there I believe. If you have more 'misc' expenses that you are allowed, it might be a problem. (The trustee can argue that you don't NEED cell phones, DSL, etc.)

[davids]

hi

The spending guidelines have a 'misc' category. Cell phones, etc. would go there I believe. If you have more 'misc' expenses that you are allowed, it might be a problem. (The trustee can argue that you don't NEED cell phones, DSL, etc.)

he cant even argue that, there are spaces exactly for those types
of expences on the forms, you do have a point, if you are filing BK, then
how do you have a home phone, DSL, cells phones, cable, after all the cave man did not have all that and they apprantly did fine

[StaciMM]

Davids-

The IRS guidelines limit what can be claimed. It used to be that if you could prove you spent it every month, and it wasn't TOO outrageous, it could go.

The allowed categories post 10/17 are:
Housing Payment
Utilities
Non
Food
Housekeeping Supplies
Apparel & Services
Personal Care Products & Services
Miscellaneous
Transportation Expenses

I don't think cable, internet, etc. would fit as 'utilities' so it is my assumption they would go under 'miscellaneous', as would entertainment.

I don't know if a home phone would go under utilities or miscellaneous. Other things, like student loan payments, child care & ongoing medical care would count, but don't have IRS standards. There is a limitation on vehicle payments ($475 for 1, $838 for 2) though I don't know what happens if your actual vehicle payment is over that. (The trustee perhaps would question why you couldn't drive a more affordable car, but that is only my guess.)

Link to the US DOJ website:

http://www.usdoj.gov/ust/eo/bapcpa/meanstesting.htm

[FoolAndHisMoney]

Yeah, just do the below form and this will have most of your expense answers.

[bkfiler]

my expenses show around -400. i wanted to make sure i included everything. and i did. if the US Trustee wanted to wack something off of it after complaining then i wouldnt be in trouble. it also showed my my cash on hand was slowly getting less and less.

[theurge]

I don't see things like dsl as being a problem - heck when I filed my attorney even wrote down cigarettes as an expense on my schedule.

[StaciMM]

The question is new law vs. old law. Under old law, if you could prove you spent the $$ on a regular basis, and it wasn't too excessive, it wouldn't be an issue. Now, there are caps. If you're only allowd $200 misc. and you have $500 misc., its a BIG problem.

It could be argued that someone doesn't need DSL, could cut down to basic cable, and could cut out other 'wants' and the end result would be $$ for ch. 13.

I don't see things like dsl as being a problem - heck when I filed my attorney even wrote down cigarettes as an expense on my schedule.