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Established Contributor

Re: Budget

When you file for chapter 13 they take any money left over after your budget....and I mean any! So make sure your budget is set really high to allow for any expenses and so that life is not so miserable. I filed chapter 13 and don't know much about chapter 7. To file chapter 13 you have to prove you have enough to make your payments and your budget. So I don't think you want to make your budget so high that they think you can't make your chapter 13 payments.
Message 11 of 15
Established Member

Re: Budget

So pretty much make sure your whole paycheck is gone within a budget with nothing left over to be taken from it?
Message 12 of 15
New Contributor

Re: Budget

The courts aren't dumb, they will want you to pay a decent amount each month unless of course your out of work or have extenuating circumstances.

You need to build in fluff but BK is not designed to be easy, your budget will be tight.
This site is M$NEY......Ch13 discharge Sept '07
10/8/07 TU: 602 - EQ: 637 - EX: 651
12/24/08 TU: 696 - EQ: 707 - EX: 716
Message 13 of 15
Established Contributor

Re: Budget

AMEN! Dill!
Message 14 of 15
New Contributor

Re: Budget

alan wrote:
CAn you be denied for Chapter 7 or 13 because your budget is to high currently?

your lawyer, if you are using one, will tell you before you even consider filing if you qualify using the means test. something about 10% disposable after all is spent will disqualify you. so that is why you have to make sure you list everything you spend your money on to prove that after everything is paid and all your checks come through, you do not have enough to make even a dollar worth of payment to your creditors.

the 341 meeting is sweet and to the point, where they ask you a few questions under oath, in my case, in front of everyone in the room (as if filing isn't embarrassing enough, lol)

the financial management classes are really helpful in terms of budgeting and your future really helped me a lot in terms of budgeting since i was never taught the importance of a sinking fund, savings, budgeting.

if your case is simple, like you really don't have enough money to pay your creditors, then you should get a discharge within a month of the 341 meeting. no creditors will be there unless you are holding on to major properties and they will lay a claim on.

just be honest with your lawyer about everything so there will be no surprises on the 341 question and answer.
Message 15 of 15