Critique My Schedule J

[rjmwx81]

I think you're overkilling this which is why I'm asking you to do the above exercise.

I've done the above exercise, but that's why I'm sweating. If everything is allowed, I'm fine...DMI is a positive $23. But one or two challenged expenses (cable bill, or the gym) and all of a sudden I'm right around that $100 threshold.

My greatest concern is the fact that I stop paying alimony in the middle of next year. That's $100 that can suddenly be added to DMI, so I need to account for that somewhere. I know my rent is going to go up some (unknown how much), and I know my insurance will go up some (again, not sure how much). I guess my question is how much weight the UST is going to put on "expected changes," since that's what I'm relying on to keep DMI reasonable.

Or maybe I'm just panicking over nothing. lol

[ccsjoe]

Very well then. Let's look at other expenses. Reread Laurie's post and increase your numbers in her suggested catorgies accordingly, I do agree with her assessment on this. That buys you an extra 100 at least. Round up your recreational to 100. What about personal care such as haircuts? Where is that number? How about laundry/dry cleaning? Even $15 or 20/month can make a difference. Life insurance? Home maintenance-e.g. lightbulbs, gardener, plunger...drano?

[justbroke]

I've done the above exercise, but that's why I'm sweating. If everything is allowed, I'm fine...DMI is a positive $23. But one or two challenged expenses (cable bill, or the gym) and all of a sudden I'm right around that $100 threshold.

There is no $100 threshold. It's $109.58 or $182.50. You can get the higher threshold if your unsecured credit amounts to more than about $43,800. Otherwise, it's a little more complex math, but basically your DMI x 60 should be less than 25% of your scheduled unsecured debt.

Since you are under the median, they are more than likely to not scrutinize your Schedule I/J as they would an over-the-median income filer.

[rjmwx81]

Ooh, life insurance, good idea. I suppose I'd better look up some quotes. That alone might make the difference. I had laundry, haircuts and home maintenance in there. I might bump them a bit, but can't do too much on home maintenance since I rent. Still, your suggestions and Laurie's give me a little bit more cushion...can't add much in the pet category though...they're fish. Pretty low-maintenance...the $15 I have in there covers food/filters and such.

[ccsjoe]

Ooh, life insurance, good idea. I suppose I'd better look up some quotes. That alone might make the difference. I had laundry, haircuts and home maintenance in there. I might bump them a bit, but can't do too much on home maintenance since I rent. Still, your suggestions and Laurie's give me a little bit more cushion...can't add much in the pet category though...they're fish. Pretty low-maintenance...the $15 I have in there covers food/filters and such.

If you are worried enough, between my and Laurie's suggestions you should be able to cover the 100 expense you're going to lose. Ultimately, I aggree with jb and return to my point of you are overkilling this...you are under median, which greatly decreases your chance of scrutiny.

[rjmwx81]

Ok thanks. That makes me feel better. Like I said I'm just a little paranoid...this is the biggest financial decision I've had to make. I've lost more sleep over this than my divorce! lol

[ozarkmiss]

There is no $100 threshold. It's $109.58 or $182.50. You can get the higher threshold if your unsecured credit amounts to more than about $43,800. Otherwise, it's a little more complex math, but basically your DMI x 60 should be less than 25% of your scheduled unsecured debt.

My atty didn't mention anything about that higher threshold. He plainly saw my unsecured debt was over 43k. (2nd mort and CCs) He advised me to show my DMI @ $50. That higher threshold would really seal my deal. I am going to have to research this further.

[justbroke]

My atty didn't mention anything about that higher threshold. He plainly saw my unsecured debt was over 43k. (2nd mort and CCs) He advised me to show my DMI @ $50. That higher threshold would really seal my deal. I am going to have to research this further.

The threshold is in 11 USC 707(b) (and was recently adjusted). It's basically the part of the Means Test where you can rebut the presumption of abuse if it's over $109.58.

All attorneys would like your DMI to be below $100 so there's a little room to grow, but the bottom number is really, that you can pay $6,575 over 60 months or more than $10,950 over 60 months.

[ladycee]

Right now I have a very high deductible, so much so that if I were to file a claim, I might not be able to pay it. So yes, I'd argue it is a necessity; I need to get the deductible down to a manageable level. I'm also assuming that my basic rate is going to jump due to the bankruptcy, since it's partially based on credit history/score.

rjm, my elec and mtg pmts went down after I filed. Was told not to concern myself with small changes .....that what counts is the what exists on the day of filing. If something is "going to jump" it will likely not be considered.

Chris

[ozarkmiss]

The threshold is in 11 USC 707(b) (and was recently adjusted). It's basically the part of the Means Test where you can rebut the presumption of abuse if it's over $109.58.

All attorneys would like your DMI to be below $100 so there's a little room to grow, but the bottom number is really, that you can pay $6,575 over 60 months or more than $10,950 over 60 months.

Thanks, so complex.

[rjmwx81]

Otherwise, it's a little more complex math, but basically your DMI x 60 should be less than 25% of your scheduled unsecured debt.

How does that work if you're using estimates for what's owed on your schedules, or if you flat-out don't know how much you owe a particular creditor? I read about a lot of people putting "unknown" for their unsecured debts for a particular creditor.

[justbroke]

How does that work if you're using estimates for what's owed on your schedules, or if you flat-out don't know how much you owe a particular creditor? I read about a lot of people putting "unknown" for their unsecured debts for a particular creditor.

Sometimes you don't know the amount. However, if you're under $109.58... it's not an issue at all. If you're over $109.58, then you may want to be a little more precise with the amounts due and owing on your Schedules.

In any event, stop worrying about it.

[ccsjoe]

How does that work if you're using estimates for what's owed on your schedules, or if you flat-out don't know how much you owe a particular creditor? I read about a lot of people putting "unknown" for their unsecured debts for a particular creditor.

Seriously? Relax, breathe, chill....are you above 109.58? No. Do you need to worry about it? No.

[rjmwx81]

Thanks everybody. I may just have to start breathing into a paper bag to make myself calm down. lol. Thanks again for the advice and opinions.

[2manybills]

I agree with Laurie M. I don't know who can get out of the grocery store for under $80 to $100 a week, especially when you consider things like cleaning supplies, laundry detergent, personal items, paper goods. You are in good shape, I would just kick up the groceries a bit as Laurie M. said.