Legal Question in Bankruptcy in California

chapter 7 rules

1)Is it true to be qualified for chapter 7 candidate,

your monthly income after tax minus your monthly

expenses must be zero or negative , regardless how

much of the minimum you should pay the amount of

your monthly debt ?

For example, Income = 3000 , Expenses = 2500 ,

Debt = 50,000 and obligation monthly payment is 3%

which is 1500/ month ?

2)Can the income tax installment be counted as monthly

expenses?

3)If I ask my employer to deduct my paycheck for 401K

contribution ,then my net income will be reduced.

Is it counted in my net income and is it legal to

do it before filing chaper 7?

4)Could you provide me the list of legal expenses items for filing chapter 7 . Is it true that expenses

such as cable/TV, DSL,long distance, Cell phone ,

entertainment, tobaco,beers, tuition fee for piano,

martial art can not be counted as expenses when filing chapter 7?

Thank you


Asked on 2/17/02, 1:45 am

1 Answer from Attorneys
Victor Hobbs Victor E. Hobbs

Re: chapter 7 rules

Go to a store selling office supplies and buy the Wolcott Forms for a Ch. 7. Or pull the forms off the internet and print them out. Then take the schedule (two pages) that has the questions on your income and expenses. Fill them out, and that will answer your questions on what are the legal deductions. Then after you understand the legal deductions a little better ask your questions again. The forms off the interenet would be current. The stationary store's forms might be out of date.

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Answered on 2/17/02, 11:59 am


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