What monthly expenses are acceptable?

As part of determining whether you can file Ch. 7 you and your attorney will have to develop a monthly budget for your household. This budget is a critical part of the bankruptcy preparation.

When preparing a budget the values that you will enter are those that you would like to be able to spend after your bankruptcy is over. What you have spent in the recent months before your case is usually different than what you can spend after. For example, you may have been deferring house hold or medical expenses since there just wasn’t enough money available. You may have also been scrimping on food because you could not afford to eat as well as you would like.

You can see an actual budget of a real case if you click here. This debtor has two children, is renting an apartment, and does not have a car payment. If you would like to understand this budget line by line click here for a detailed explanation.