People who file Chapter 13 bankruptcy must complete a number of documents detailing their financial situation. Schedule J of the bankruptcy petition requires debtors to list household expenses to determine how much money the debtor has left over each month to pay creditors. Bankruptcy courts do not allow all expenses, and the expense amount threshold varies depending on the county in which the debtor lives and the number of people in his household.
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Bankruptcy courts allow expenses such as rent or mortgage payments, necessary maintenance of the property and repairs. Debtors can also count property taxes and homeowners or renters insurance.
Debtors may deduct the costs of utilities such as water, sewage, electricity and natural gas. Courts also recognise fuel costs such as propane and wood pellets as allowable expenses in Chapter 13 bankruptcy.
The courts allow expenses for household groceries and meals eaten out of the home such as lunch for students or working adults. Filers may not include business or other non-necessary meals outside the home.
People who file Chapter 13 bankruptcy can deduct transportation costs to and from work. Bankruptcy courts also allow expenses such as the costs of a uniform or other necessary clothing.
Vehicle Fuel and Maintenance
In Chapter 13, the courts allow gas for cars and maintenance such as oil changes, tune-ups and other regular services.
Chapter 13 bankruptcy allows people to claim expenses for medical, dental and vision care. This includes health insurance payments, out-of-pocket costs and prescriptions.
Chapter 13 debtors are allowed expenses for personal care items such as shaving supplies, feminine items and oral hygiene.
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