When filing for bankruptcy, there are allowances for certain everyday living expenses that are acceptable depending on the cost of living in your location. These standards are your "allowable living expenses."
When filing for personal bankrutpcy, either Chapter 7 or Chapter 13, you must create a budget that shows your estimated monthly living expenses versus your monthly income. Depending on where you live, certain amounts are acceptable as allowable living expenses for food, rent and gasoline within your bankruptcy petition.
Allowable Living Expenses
Allowable living expenses depend on location. Some areas have higher standard living expenses versus others; usually large cities have higher allowable living expenses than small towns.
Food Allowances in Bankruptcy
Food allowances in bankruptcy are calculated based on location and household size. You can only count the number of dependents as people in your household; usually only a husband, wife, and their minor children are parties of a household. The food allowance amount goes up for every dependent in the household starting at $293 per month for a one-person household up to $752 a month for a four-person household.
Jackie Lynn is an attorney by trade with a Juris Doctor and bachelor's degrees in law and business respectively. She specializes in bankruptcy and immigration law and is also is an avid fitness enthusiast and animal lover. She has been writing on her own hobby website since 2007.