What expenses belong in a bankruptcy budget? When filing for bankruptcy in Chicago, Schedule J is where to list your monthly expenses. It’s important to accurately fill out this form, as it will help determine your disposable income and ultimately your eligibility for Chapter 7 or Chapter 13 bankruptcy. In this blog post, we’ll go over some of the appropriate monthly expenses that you can list on Schedule J.
Bankruptcy expenses for Schedule J
This includes your rent or mortgage payment, property taxes, homeowners insurance, and any utilities such as gas, electricity, and water.
This includes your car payment, insurance, gas, and any other transportation costs such as public transportation or ride-sharing services.
Food and Household Expenses
This includes your groceries, household supplies, and personal care items such as toiletries and medication.
Childcare and Education Expenses
This includes any costs associated with childcare, such as daycare or after-school programs, and educational expenses such as tuition or student loan payments.
This includes your health insurance premiums, copays, and any out-of-pocket expenses for medical care.
Personal and Recreation Expenses
This includes any expenses for entertainment, hobbies, and personal care such as haircuts or gym memberships.
Taxes and Other Deductions
This includes any taxes you pay, such as state and federal income taxes, as well as any other deductions such as retirement contributions or charitable donations. If your taxes are deducted from your pay, deduct them from your income on Schedule I of the bankruptcy petition.
It’s important to note that not all expenses will be accepted by the bankruptcy court. For example, luxury expenses such as vacations or expensive hobbies may not be considered necessary and may not be approved. Talk to us to review your bankruptcy budget if you are looking for a bankruptcy attorney in Chicago. We offer free bankruptcy consultations.
Reasonable and Necessary Expenses
Additionally, your bankruptcy budget of expenses should be reasonable and necessary for your particular circumstances. For example, if you have a large family, your housing and food expenses may be higher than someone who lives alone. Also, it is permissible to list known expenses that will incur in the near future. You can pro-rate these expenses if they occur less than once a month.
In conclusion, when filling out Schedule J in a Chicago bankruptcy case, it’s important to accurately list all of your necessary monthly expenses. By doing so, you will ensure that you have an accurate representation of your disposable income, which will ultimately determine your eligibility for chapter 7 bankruptcy or the terms of your repayment plan in a chapter 13.
Call us for a free consultation to review your situation. We want to help you out of debt. We will help you get a fresh start. Call us today. Our attorneys are standing by for a free phone consultation.