How to Determine your Monthly Expenses in your Bankruptcy Case
If you are filing for bankruptcy, an experienced Lake County bankruptcy lawyer can help you determine your monthly expenses. This process may seem daunting, but your attorney is experienced in navigating the process and will make sure you will be able to calculate your expenses appropriately.
One method of helping your bankruptcy claim is by reducing your current monthly income (CMI). If your income is greater than the median income according to the tables, the IRS allows you to deduct the following:
– Necessary living expenses
– Living allowances
These are established in their National Standards and Local Standards. The IRS will then use the standards to determine your ability to pay any taxes you owe.
The Local Standards determine roles for deducting the following:
The Local Standards, which are also known as Collection Financial Standards, vary by state and, in some cases, by county. By contacting us we can inform you of any implications that may affect you.
Some housing and transportation expenses are listed separately under secured debts. These expenses include car payments and mortgages. Any amount you spend on car payments and mortgages must be included in the secured debt section. If the amount of your payment is greater than the cost of owning your vehicle, then enter a zero. The form will not recognize negative numbers.
Vehicle transportation is a different matter entirely. These do not vary by state, but by region (Northeast, Midwest, South and West). These amounts are listed in the Local Standards. Keep in mind the figures for owning and driving multiple vehicles. This includes operating costs, as well as public transportation costs.
For more information on how you can determine your monthly expenses in your bankruptcy case, contact Lake County bankruptcy lawyer Merideth Nagel, P.A., Attorney at Law at 352-404-4634, or toll free at 877-580-6868.