My Budget and Bankruptcy

In bankruptcy, your budget is used to determine your monthly expenses, which will be factored into your qualifications for bankruptcy. This information is used to determine how much you can afford to pay towards your debts each month.

To calculate your budget, the court will consider a variety of factors, including your:

• Income, including any salary, wages, or other forms of regular income
• Living expenses, such as housing, food, utilities, transportation, and medical expenses
• Debts, including any mortgages, car loans, but does not include unsecured obligations

The court will take into account your reasonable and necessary living expenses and compare that to your income. If you have disposable income after paying for your reasonable and necessary living expenses, the court may require you to pay some or all of that income towards your debts in a Chapter 13 bankruptcy. In a Chapter 7 bankruptcy, the expenses will need to exceed the income or result in very little disposable income.

It’s important to note that the bankruptcy laws can be complex, and it’s recommended to consult with a bankruptcy attorney to understand your specific circumstances and options.