Income Question

[MrChairman]

My attorney sent me the following today. The surplus is $440. Is that really enough to be denied a Ch. 7. After looking at the paperwork I did underreport some expenses and missed some altogether. Was just curious if $400 that big of a surplus in bk world...

Due to the surplus in your budget, it is possible that the US Trustee may require you to convert to a Chapter 13 notwithstanding your status as disabled veterans. Therefore, please review the budget carefully to be sure you have included all of your monthly expenses.

[Jnbmom]

Yes I know it doesn't seem like alot but yes 440.00 might throw you into a 13.

[Anonymous]

If we're talking about $440 monthly, then yes -- this is a large surplus. $440 per month on a CH13 plan will contribute $26,400 towards creditors (and your attorney).

I read the email you received as a strong nudge to find AT LEAST $440 in additional expenses. As a general rule, you should never underreport. You shouldn't lie either. What I recommend is really looking at what your average expenses are -- take an average over the past year, versus simply looking at last month. Remember to include expenses that do not occur monthly.

If we're talking about the means test (versus current monthly expenses), get familiar with what items are included and carefully evaluate if you have any of those expenses. 

[MrChairman]

Thank you. Appreciate the response. I never thought about it from the $440 a month to creditors perspective!