income thresholds
May 17th, 2006 by Questions
I realize that there are government imposed income threshold amounts but I am a bit confused as to surplus income? As I understand it, if the threshold is $1755; I earn $1955, $100 ($200- 50%) is considered surplus. What if my expenses/spending do not equal $1855 for the month? Say they come in at $1655. I read somewhere in a blog that one has to submit receipts. So what happens to that additional $200, can I keep it in the bank for “emergency” expenses/savings or is it also taken into the estate? What if I choose to purchase an item instead? Will that be repossessed until such time I am discharged? Another question, what exactly make up the household furnishings exemption? I know the more evident items but what about everyday things like cutlery, towels, CD’s, toaster,etc. What about a generator or lawn mower, etc?
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May 19, 2006 at 9:45 am, Barton Goth, GCO Inc. Bankruptcy Trustees said:
The guideline is based on your income not your expenses. The court’s response to this type of issue (i.e. expenses more than you income) is that you will have to cut back as you are living beyond your means. However, as this is based on income, if you extra left over, this is your to do with as you see fit. I always recommend setting the monies aside for emergency expenses, but this is really your decision.