What is bankruptcy living expenses budget?

Declaring oneself bankrupt is somehow a difficult process and one needs to follow certain norms and procedures before trying to declare oneself as a bankrupt.

One of the important aspects of it is the living expense budget. This needs to be completed before filing your application.

While the filing of your bankruptcy, you need to complete the Form 6.28, also known as bankruptcy statement of affairs.
In this form, you need to include all the details about your assets which the official receiver will evaluate in order to ascertain whether or not the proceeds from the sale of your assets will be sufficient to make payments towards your debts after your bankruptcy.

The Section 7 of this form contains the details of your essential expenses that you will be going to cover with your income.

It is very important that you fill-in Section 7 with all the relevant details in the correct manner.

The official receiver will assess your details to determine the portion of your income that will be left aside for yours and your family’s necessary expenses. The remaining portion of your income will be taken by the official receiver and will be distributed among your creditors.

So, maintain a correct account of your expenses in the budget. If you quote a lower amount than what actually you will need to fulfill your essential needs, you may end up paying more towards your debt payment than actually what you can afford each month.

As usual we remember you that bankruptcy is a serious matter; in any case we suggest you to seek impartial advice from an impartial expert.

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