The IRS sets allowable living expenses. It does not matter what you actually spend, you will be limited by the IRS Guidelines. Among items that will not be allowed, cable, cell phones, satelite or internet access unless you can document that you need them to produce income.

Regardless of what you may have heard or read, EVERYONE considering bankruptcy must perform the means test.



Income Greater than   - 9,985 14,999 19,993 29,989 39,997 49,993 69,967
But Less than   9,984 14,988 19,992 29,988 39,996 49,992 69,996 -
  WI Median Income Allowed expenses per IRS Guidelines
Single 35,885 23,040 23,340 23,724 24,132 25,128 25,992 26,496 29,640
2 Person Family 46,926 25,644 25,764 25,836 27,132 27,732 28,488 30,444 33,564
3 Person Family 57,968 32,028 32,220 32,412 32,592 32,904 34,032 35,880 39,168
4 Person Family 69,010 35,268 36,300 36,348 36,468 36,576 38,268 40,272 43,464
5 Person Family 80,051 36,876 38,040 38,208 38,460 38,700 40,524 42,660 45,972
6 Person Family 91,093 38,484 39,780 40,068 40,452 40,824 42,780 45,048 48,480
Green indicates you are safe to file a Chapter 7.

Yellow indicates you earn more than the IRS guideline expenses and may have to file a Chapter 13 even if your income is below the median.

Red indicates you are will probably have to file a Chapter 13, a Chapter 7 is unlikely to be approved.

The above numbers are based on Dane County Wisconsin Allowable Living Expenses for Housing and Utilities, Midwest Region Allowable Expenses for Transportation and do not include priorty debt, secured debt or special items. Further, the housing figure assumes rental housing - the new law does not specify (nor does the IRS) how much of the Housing and Utilities allowance is for housing and how much is for utilities...necessary to determine the utility allowance.



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