Schedule J – Current Expenditures of Individual Debtor(s) – is one of the bankruptcy Form 6 schedules that details information about a debtor’s financial situation. All expenses should be calculated on a monthly basis using the past six months of expenditures as a guide.
Gather Your Materials
Collecting the following paperwork in order to calculate your monthly expenses:
- Mortgage statement (unless you rent)
- Utilities bills, including electricity and gas, water, telephone, cable, and trash collection
- Receipts for all expenditures for the past six months
- Records for charitable contributions
- Insurance statements for home, life, health, auto, and other
- Tax records including federal, state, and auto
- Payments for loans
- Bank statements for last six months
Calculate Your Monthly Expense
For each line item, add up the total expenditure for the last six months. Find the monthly average by dividing by six. Some expenses may not be paid on a monthly basis. If expenses are not made monthly, pro-rate them by multiplying the number of payments made in a year and dividing by 12.
Do Not Duplicate Expenses
Some expenses can fit into more than one category. For example, homeowner insurance should not be included on Line 11 if it was already calculated in Line 1. Income taxes withheld from your paycheck should not be included on Line 12, as it has already been accounted for on Schedule I.
Do Not Underestimate or Overestimate Expenses
Be accurate and inclusive while also being reasonable. Some expenses, such as cable, clothing, and entertainment may be disallowed depending on the trustees view of their necessity. If you are unsure of the reasonableness of an expense, be sure to discuss it with your attorney.
Anticipated Changes
If you expect any changes in your expense within a year of filing Schedule J, you must make a notation of such under the applicable section. This may include a vehicle being paid off and your expenses decreasing or a child going to college which may cause expenses to increase. You are not required to complete this section if you are unaware of any potential changes in your expenses.
If you are considering bankruptcy, contact a qualified attorney in your state. An attorney specializing in personal bankruptcy can assist in choosing the best option for your situation.
