Part of the process of preparing to file a bankruptcy is to list all of your living expenses. I give a form to clients to help them be sure to include everything. However, one item often gets left out when the clients both work and have young children. Yes, that's right: daycare expenses!

If you have young children you know how expensive this can be. Oftentimes it is the reason one spouse does not work; he or she cannot get a job that pays significantly more than daycare costs. Some people are fortunate and have grandparents, friends, neighbors, and the like, that will take on the supervision of their children while they are at work. But those who do not, really feel the pinch. This expense is often left out because the bankruptcy expense form on the petition does not have a line for it. However, it is considered a necessary expense, and is even included in the means testing calculations. In fact, those expenses can often mean the difference between being able to file a chapter 7 and having to file a chapter 13.

Another expense that is often overlooked, and for the same reasons, is school expenses. Parents these days are expected to pay for more and more supplies, materials, and equipment for children in public schools (let alone tuition for private schools). This also helps with means testing, but is capped at a maximum amount per child per month. Anyone preparing to file bankruptcy should consider these expenses carefully and include them in their budgets.

If you are going over your budget to see if you need to file bankruptcy in order to get your financial life back on track, please contact my office to discuss your case in detail. A careful analysis of cash flow is very important to getting a fresh start!

Looking for more information about bankruptcy? Get the answers to the most frequently asked questions by downloading my free book, Top Questions People Ask About Filing Bankruptcy in New Jersey. It will give you the answers you need all in one place. Then call me at 888-857-8418 or contact me through this site for an appointment for a free consultation to discuss your case.

The Law Office of Steven J. Richardson serves New Jersey, including:  Gloucester, Camden, Burlington, Salem, Cumberland and Atlantic Counties and surrounding New Jersey communities, including Woodbury, Colonial Manor, North Woodbury, Woodbury Heights, Deptford, Thorofare, Gloucester City, Washington Township, Blackwood, Brooklawn, Westville and Pitman.

Richardson Law Offices
40 Newton Avenue
Woodbury, NJ 08096
Phone: (856) 686-9910
Fax: (856) 686-9911