Monthly Expenses Tutorial on entering monthly expenses in a consumer bankruptcy case
Scope of Tutorial • This tutorial covers how you enter expense information in a consumer case • Prerequisites: You should already have viewed these tutorials: • How to Use BkAssist • Setting Up a New Case • Who should view this tutorial: anyone who will prepare a bankruptcy case using BkAssist • In this tutorial, we’ll continue preparing the case of Sarah & Sammy Sample that we first created in the Setting Up a New Case tutorial. • If you want to follow along, download the file Sample_Sarah_Sammy_Basic.bkv to the BkAssist home directory and use the File/Receive menu command to load it into BkAssist (the Receive password is BkAssist). Then perform each of the steps illustrated during the tutorial. • If you instead want to see the end result from following these steps, download and receive Sample_Sarah_Sammy_Complete.bkv instead.
The Monthly Expense Screen • The Monthly Expense Screen has two parts: • A grid, laid out similarly to the official Schedule J, for entering expense data. The grid will have a separate column for the debtor’s spouse if the debtors are separated but still filing jointly. • A control screen that summarizes the household expense totals and has a free-text block for describing anticipated changes. • The expense grid is very tall. You will need a high resolution monitor (say 1920 by 1200) to see all of it. If your monitor is too small, use the scroll bars on the edges of the window to scroll missing portions into view. • The grid will appear slightly different for a case destined to be filed on or after December 1, 2013, when a new version of Schedule J becomes effective. You will not, however, have to update the expense numbers if you change the filing date—BkAssist is already collecting all needed data and will put the numbers where they belong on the new forms. • We’re showing the final versions of these windows. Naturally, the numbers are zero when you start.
Entering Expense Data • You cannot change the number shown for three categories: • Regular monthly payments for secured debts or unexpired leases (taken from the liability dialogs) • Operating expenses for real property assets (taken from the asset dialogs) • Business expenses (taken from the business income/expense data entered from the Debtor or Spouse Info Pages). • For the most part, it should be obvious how to fill in the blanks on this screen. Note the following: • Be sure not to double count real estate taxes and homeowner’s insurance that’s being escrowed by the mortgage lender. There is no escrow for the Sample’s mortgage, so we’ve included those expenses here. • Likewise, be sure not to double count expenses that are paid through payroll deductions, such as health insurance and child support. • Use the Specify buttons to enter expenses in open-ended categories.
Business Expenses (1) • From the Business List (reached from the Debtor Info or Spouse Info page), pop up the business dialog for each business unit. • Click on the Edit button to pop up a dialog where you can enter basic income statement data. • You can also import the income and expense data from an external file. How to do that is beyond the scope of this tutorial.
Business Expenses (2) • Fill in the projected and historical columns with income and expense figures • Positive numbers are income • Negative numbers are expenses • The projected column is for expected future amounts • The historical column is for the means test • Based on the values you enter on these screens, BkAssist will: • Report income and expense totals on Schedules I and J for an individual debtor • Add a supplemental income statement form to the schedule documents for each business entity (click on the link to see what this looks like) • Report income and expense amounts on the B22x (means test) form
Real Estate Expenses • Real estate income and expenses are attributes of the real estate in BkAssist, so you enter both of them together from the asset screen for each parcel of real estate. • Imagine that Sarah & Sammy spend $325.00 per month on their home, between taxes, insurance, and repairs. Here’s how you disclose those expenses: