Max medical expenses?

[NewPage]

My Sched J currently has $300 under Medical. I can't quite determine what is the maximum. Our 12 yr old was recently diagnosed with diabetes so we have new expenses to deal with now, but don't have a true idea yet of what costs will be. How large can I make this expense? Family of 6.

[debee]

The Means Test amount is $60 per person. You can exceed it, but may need to document your expenses. I would recommend doing your best to "project" expenses based on what you pay now per month.

You should have an rx for insulin including the dosage & you should be able to do the math to calculate how much she uses per day & then per month (or 90 days if that's how your rx arrives), glucose, emergency glucagon injection, test strips, alcohol swabs, etc.

If she's on the pump, you can price out the reservoirs, tubing, etc at Minimed and then multiply that to get a monthly expense. That's what we did.

You can also bump up your food bill if you find that you have extra expense for sweetener, etc. Also factor in the regular visits to endo, the labwork, your deductible, etc. Don't forget all the OTC stuff - cold remedies, band-aids, allergy meds, aspirin, reading glasses, Icyhot, and so on. Also, check-ups as well as sick trip copays.

[ValleYum]

Don't forget the dentist!! Our dental insurance never gets us through the year and we don't have kids at home!!

[chiwawa]

I have a major dental work done it cost $5000. I will be filling the next 5 months can I use this for medical expense.
Thank you,

[NewPage]

debee -- Yes, that's a tough one right now. We have only filled a prescription for insulin once, and that wound up being free b/c of a coupon we had from the doctor. Right now he's not using even 1 pen cartridge a month, but who knows if/when that will change (this is a really long story, but we are in early stages yet). We have the state as secondary insurance, and they are supposed to pay what the primary insurance does not, but we couldn't get them to pay for the first insulin prescription b/c they wondered "why he needs the insulin". Um.... So we were waiting waiting waiting for them to approve it after the doctor faxed in the appropriate paperwork, and it was taking forever, and we wanted to have it on-hand, so we finally gave up and used the coupon. Thankfully we have another as well. Hopefully the secondary insurance has their act together now. However, we don't know how long we wil have that either, like if DH's income suddenly picks up, we won't qualify any more. But I guess what matters is what's going on right now, right?

We do have dental figured in :-)

[debee]

I have a major dental work done it cost $5000. I will be filling the next 5 months can I use this for medical expense.
Thank you,

If you have already had the medical work done, then it is not an expense going forward so you wouldn't list it.

If you haven't had it done and it is "necessary" (as opposed to cosmetic), then you would divide it by 12 and list it as an upcoming expense. Be prepared to prove it (document from the dentist) in case you are asked by the trustee.

Good luck!

[debee]

However, we don't know how long we wil have that either, like if DH's income suddenly picks up, we won't qualify any more. But I guess what matters is what's going on right now, right?

That's what I'm thinking. The problem with losing coverage if income goes up is that you then have the income (presumably) to cover the expense. The bottom line doesn't really change. Plus, it's speculative. If you know for sure that it's coming, then you would be able to list it and defend it if need be. Are your schedules shaping up alright?

[NewPage]

Well, I hope so. My attorney's ass't sent me this Sched J. Thoughts?

1. Rent or home mortgage payment (include lot rented for mobile home) $ 730
a. Are real estate taxes included? Yes __x______ No ________
b. Is property insurance included? Yes ________ No ____x____
2. Utilities: a. Electricity and heating fuel $ 230
b. Water and sewer $ 55
c. Telephone $190
d. Other Garbage $ ____26______
3. Home maintenance (repairs and upkeep) $ __150_____
4. Food $ ___800__
5. Clothing $ ____100____
6. Laundry and dry cleaning $ _____0____
7. Medical and dental expenses $ ___300______
8. Transportation (not including car payments) $ ___450______
9. Recreation, clubs and entertainment, newspapers, magazines, etc. $ ___50_____
10.Charitable contributions $ ___15___
11.Insurance (not deducted from wages or included in home mortgage payments)
a. Homeowner’s or renter’s $ ____55_______
b. Life $ ___0______
c. Health $ ___630_____
d.Auto $ ____55_____
e. Other $ __dental $98_______
12.Taxes (not deducted from wages or included in home mortgage payments)
(Specify) $ ___175_____
13. Installment payments: (In chapter 11, 12, and 13 cases, do not list payments to be included in the plan)
a. Auto $____350_____
b. Other $ __(spouse credit $700)________
c. Other $ ____0__
14. Alimony, maintenance, and support paid to others $ ___0____
15. Payments for support of additional dependents not living at your home $ __0______
16. Regular expenses from operation of business, profession, or farm (attach detailed statement) $ _100______
17. Other $___0___
18. AVERAGE MONTHLY EXPENSES (Total lines 1-17. Report also on Summary of Schedules and,
if applicable, on the Statistical Summary of Certain Liabilities and Related Data) 5284
19. Describe any increase or decrease in expenditures reasonably anticipated to occur within the year following the filing of this document:
20. STATEMENT OF MONTHLY NET INCOME
a. Average monthly income from Line 15 of Schedule I $ 4716______
b. Average monthly expenses from Line 18 above $ __5284_____
c. Monthly net income (a. minus b.) $ ___-568_____

[NewPage]

That was from some months ago, February I think. The monthly income now is down to $4125 on average.

Also, I see that bit about an changes reasonably expected to occur. Well, health insurance (we use 2 companies) almost inevitably goes up every July and August. Mine went up $100 last year! I dread what will happen this year. Can I have them put something about that in there?

[momofthree]

Your food/clothing/laundry expenses seem quite low for a family of 6. You have a total of $900 listed, and you're allowed $1901/mo per IRS standards, though this also includes a "misc" expense which normally has to cover things like recreation, cell phones, etc.

Your health insurance doesn't come out of your paycheck?

You have medical/dental of $398 listed and IRS standard is $360 for a family of 6, so they may already request documentation for what you already have listed. IF you can document more though, by all means, list it!

[NewPage]

$1901 total? I know there's a page where I could find this info, but I'm tired and not thinking clearly. Could you point me to it? I would like to have our maximum or very near it for each category....

Health insurance -- my husband is self-employed, I am not employed. Premium for him & our 4 kids is $190, premium for me is $440. For the next few months, anyway *nail-biting in fearful anticipation of insurance rate letters*

Medical - I'm not sure, but I think the legal ass't must have put that figure in there. For dental, the $98 is our monthly dental insurance premium.

Thank you!

[momofthree]

IRS standards here:

http://www.justice.gov/ust/eo/bapcpa/20110315/meanstesting.htm

For dental, the $98 is our monthly dental insurance premium.

In that case, you can bump your medical up to $360.

[tobee43]

My Sched J currently has $300 under Medical. I can't quite determine what is the maximum. Our 12 yr old was recently diagnosed with diabetes so we have new expenses to deal with now, but don't have a true idea yet of what costs will be. How large can I make this expense? Family of 6.

we were a family of two and ours was overy 2k monthly, however, we were able to back it up. really, you can go to your pharmacy since many doctors are unaware of out of pocket costs and ask them to give you an average in writting. i would really think that would be fine for the trustee's office. especially, and although the $60 allowance was done what??? a few years back, it's not as realistic when there is a chronic illness involved. most courts understand this, so i don't think you have much to worry about, however, don't "low" ball it, for your sake. and best of luck!!!

[sunshinepa]

Your attorney should be able to tell you what your trustee will scurtinize. Mine put my medical at 125.00 a month for a single person and I was a nervouse wreck. He must have known the trustee fairly well because it was never questioned. I could have proved 40.00 a month. I would ask the atty.

[tobee43]

Your attorney should be able to tell you what your trustee will scurtinize. Mine put my medical at 125.00 a month for a single person and I was a nervouse wreck. He must have known the trustee fairly well because it was never questioned. I could have proved 40.00 a month. I would ask the atty.

i have to add, our atty didn't really understand the nature of our illness and expressed that really and basically, as long as you can back it up, one should be fine. and of course, we could, so, we felt comfortable with it as well as i'm certain our atty did because we had the back up just in case it was questioned. even if one's atty may think an expense is high, if its the truth it really doesn't matter one would hope?

also you're point about the allowable as opposed to actual, i really think your atty advising you did $125 as opposed to the $60 or $40 is also an indication of the inflated medical costs today.