sched J expenses: Professional research costs (professor)?

[Moneypenny]

Hi,

I have a non-common question. I am a professor and need to travel outside the country sometimes to do research, plus I need to buy books. I haven't been doing that since being broke and my career has suffered. I also cannot buy books or travel in the months preceeding my filing because I have to save for a lawyer. I wont have any reciepts for that.

Is this even an allowable expense? If I get stuck in a 13 my career is ruined. I dont know if or how I could prove that.

Can I claim research or book expenses in sched J at all? what about if I have no reciepts because I cant afford anything right now? which is more likely to fly, books or research, or neither?

thanks!

Mr. MP

[mtbc]

I included "professional subscriptions & textbooks" among what I listed on line 17 and could have produced a clear pattern of past receipts and invoices if need be. Nobody complained, but maybe I was just lucky. If necessary I had planned to point out that my career is in a rapidly-changing field and they were needed to allow me to maintain my income and find work.

[backtoschool]

I think trips to exotic research locations will be looked at closely by the US Trustee and may not be allowed as expenses.

Books should be fine as long as you have receipts.

[Moneypenny]

my research, which is a required part of my employment, involves the study of foreign cultures, in particular one particular country. It is my job to go there and do research sometimes.

However, I totally understand if this is not going to work out, but it will mean a major sacrifice to my career (basically, its end) and I hope that at least counts somehow, since the law is interpreted as meaning we are supposed to be sacrificing too, not just the cc companies.

is a 100 bucks a month ok for books? That is like 5 books. not much.

MMP

[backtoschool]

The trustee is not going to want to see exotic travel as a necessary expense, especially exotic, expensive travel. If you are close to median, that could easily be a red flag. The trustee will want to know why your employer is not reimbursing you for the exotic travel if it is mandatory.

$100 a month for books for a professor is well within reason. (That is one or two hard cover academic books a month which is not much) Save your receipts though.

[Moneypenny]

I guess I am just thinking through all the reasons why I should not be in a 13. I am about 4k under median, and in current circumstances in the negative on sched I & J. But at some point i do have to continue with my research and in a sense I am an independant contractor as far as the research goes: if I dont do it my career suffers but its up to me to come up with the money for it.

Unfortunately I dont have any money to buy books right now (or clothes or haircuts or anything) so I cant show that expense if I am called on it.

MMP

[backtoschool]

I guess I am just thinking through all the reasons why I should not be in a 13. I am about 4k under median, and in current circumstances in the negative on sched I & J. But at some point i do have to continue with my research and in a sense I am an independant contractor as far as the research goes: if I dont do it my career suffers but its up to me to come up with the money for it.

Unfortunately I dont have any money to buy books right now (or clothes or haircuts or anything) so I cant show that expense if I am called on it.

MMP

Many professors apply for grants to fund their research. If you had a grant for your research that would add to your income, but would also justify the travel expenses.

Getting exotic travel covered as a "special circumstance" would definitely be a red flag to the UST. I know that research is necessary in academia (hence my nickname on this board. ) But even with receipts, the trustee is going to want to know why you had the money to go to an exotic locale, but could not pay your bills. The UST could easily try to take the money that the travel would cost, and use it to fund a chap 13.

As for the books, you will definitely need receipts, although you may not be asked for them. Since it only takes around $150-180 a month in disposable income to kick you into a chap 13, if you are spending $100 a month on books you will need to show proof of that, and give an explanation as to why the books are necessary, or the trustee will expect that money to go towards funding a chap 13.

[Moneypenny]

thanks that's good advice.
sounds a little risky though about the books: what if they dont believe i need them. why cant i get them from the library, etc.
the travel i realize wont fly

[BCA2009]

I wouldn't necessarily give up on the travel aspect. I would lay out a business plan of what it take to work in your field. Average annual cost of travel, research, supplies, etc.

They may all be rejected and you may be forced into Chap 13. But what have you lost by trying?

You say you are under the median, are you still needing expense to pass the tests, even though you are under the median?

How do you earn your income. Are you a consultant/private contractor with a college? Do you get paid for Article submissions? If so, I would try to postpone paid lectures and article submissions for a few months to lower your 6 month lookback and start buying some book to create a "history" of the that expense, if you need it to pass the tests.

Good Luck!

[Moneypenny]

i am a tenured professor, but subject to frequent reviews which can lower compensation. i must publish research regularly and it is up to me to fund that.

i am under median but do need expenses: irs standards are less than the median in my area. i still can use some life insurance and looking into various other things. worried mostly about something not counting and so having a back up expense.

regardless of what is right in court, in truth my biggest fear of all is getting stuck in a 13 which would kill my career. I really need to travel and buy books. This is true whether the court recognizes it or not. If i get a 7 i can find some way to make some money later so that my career can continue. If i am in a 13, i'm ruined.

[BCA2009]

i am a tenured professor, but subject to frequent reviews which can lower compensation. i must publish research regularly and it is up to me to fund that.

i am under median but do need expenses: irs standards are less than the median in my area. i still can use some life insurance and looking into various other things. worried mostly about something not counting and so having a back up expense.

regardless of what is right in court, in truth my biggest fear of all is getting stuck in a 13 which would kill my career. I really need to travel and buy books. This is true whether the court recognizes it or not. If i get a 7 i can find some way to make some money later so that my career can continue. If i am in a 13, i'm ruined.

I totally understand that, I was about minus 600 or something, I just kept adding anything I could think of just in case something else was challenged.

Do you have a mortgage or do you rent? And either way, is you payment higher than the IRS average? This is where most people qualify. Most people have mortgage payments that are much higher than the "average".

[backtoschool]

Here are some items you could include that you may not have thought of:

1. books and subscriptions (I think you should include these)

2. travel expenses to any colloquia-conferences that you have to attend or speak at. (this would be different than the travel to exotic research locales)

3. Printing costs.

4. Internet costs

5. medical, life, disability, renter's, home, car, travel insurance.

6. eyeglasses and eye exams (professors read a lot. ) This is not a trivial expense. I just got two new pair of glasses and an eye exam and the bill came to $1,000.

7. data backup and storage costs (of your research).

8. membership costs in any alumni, professional, or academic organizations.

Anyway, I am sure you have most of these, but in case you don't I am putting them here.

[Moneypenny]

thanks, that's all good advice.

i am trying to pile it on, as you say. the list of items is great

one problem i have is that i have not been spending in all these areas because I am trying to make ends meet. so i dont have reciepts. i haven't been going to conferences, constantly refusing invitations (i was at one point a b-list academic at least), and cancelled my professional memberships and subscriptions. I also have not done research travel in years. my career is on life support.

i cant even afford a retainer yet, so not sure how i can by with these professional expense listings unless i suddenly strike up the subscriptions and memberships now.

[BCA2009]

Unless you think you will be sued very soon, there is no hurry for you to file. Stop making payments on your debt (the debt you plan to discharge) and start living like you would after discharge. By this I mean spend your money on the books, conferences, associations and research materials that you need for your career. Some people have held out for more than a year without being sued.

You will be creating the "expense history" that you need to justify these expenses on your means test and schedules.

Also during the period keep your income as low as possible for the means test.

Just a suggestion, but what have you got to lose?

[Moneypenny]

unfortunately i have not paid cc's since sept 09 and not sure how much time i have left. i did get one threat to sue from a very small dentist debt that backed off (i think) after i said i was going to file. i have a clean 6-month look back in terms of median.

i just dont have any money to pay for all those expenses now, and do want to file next month, so it's kind of a bind. I just dont have the money to show that i dont have the money for a 13.

i might re-sign up for some of the professional associations though, perhaps borrow some cash from someone. i dont know.