For clients from the Auburn area filing bankruptcy, there are a number of considerations that need to be taken into account. The standardized expense deductions for Auburn bankruptcy clients are one such subject. Showing an accurate portrait of your financial situation is critical in filing for either Chapter 7 or Chapter 13 bankruptcy. The bankruptcy courts need information regarding your income and detailed information about your expenses and payment on secured debts as well.
Whether you are filing for Chapter 7 or Chapter 13 bankruptcy, you are required to include a form in your bankruptcy petition that shows your monthly income, in addition to, a means test calculation for Chapter 7 bankruptcy or a Calculation of Commitment Period and Disposable income for Chapter 13. In these forms, standard deductions are categories of living expenses such as housing, food, and childcare. While some of these expenses include 100% of the money you have spent, others require you to enter a predetermined amount that is sometimes based on a nation standard and other times the amount is based on the county in which you are filing bankruptcy. Because of this difference in standard deductions, it is highly recommended that you speak with your Auburn bankruptcy lawyer in order to ensure you are entering the correct information and not missing out on standard deductions allowed by bankruptcy law.
There are four different federal jurisdictions in California for bankruptcy courts. Where you file your bankruptcy will depend on where you have lived for the previous 180 days prior to the bankruptcy petition filing. Based on the district in which you live, it is possible for the standard deductions to differ between the four jurisdictions. If you live in and plan on filing bankruptcy in Auburn California, it is advisable to reach out to your Auburn bankruptcy attorney in order to find out how much in standard deductions you can use to when filing for bankruptcy to discharge debt to improve your financial situation.
Categorized in: Filing Bankruptcy