How To Fill Out Schedule J: Your Expenses for Chapter 7

Schedule J is a required bankruptcy form you must complete when filing Chapter 7. It lists your estimated monthly expenses after filing. The bankruptcy court uses it to understand your household budget. Combined with Schedule I (Your Income), it shows whether you have disposable income left to pay creditors.

Your expenses must be both accurate and reasonable. The court expects honesty, not perfection. You’ll need to include a wide range of expenses, from rent and utilities to transportation and personal care.

What Is Schedule J in Chapter 7?

Schedule J: Your Expenses is one of several official forms required to file Chapter 7 bankruptcy.

It shows the bankruptcy court what expenses you expect to pay after your bankruptcy filing. The court uses this information with Schedule I to understand your post-filing financial situation.

If you’re considering bankruptcy, you can speak with a bankruptcy attorney for free to understand how Schedule J applies to your case.

What Expenses Need To Be Included in Schedule J?

Schedule J asks you to list estimated expense amounts for several categories. You need to be thorough and accurate.

Property Expenses

Property expenses typically mean your monthly rent or mortgage payments. You should also include:

• Real estate taxes
• Renters or homeowners insurance
• Home maintenance costs
• Homeowners association dues

Utility Payments

Include all monthly utility costs:

• Electricity
• Heat and gas
• Water and sewer
• Garbage collection
• Phone bills
• Cable and internet bills

Insurance Payments

List any monthly insurance premiums you pay:

• Health insurance
• Dental insurance
• Life insurance
• Vehicle insurance

Debt Payments for Non-Dischargeable Debts

Some debts survive Chapter 7 bankruptcy. Include monthly payments on these debts.

Student loans often can’t be discharged. Back taxes usually survive bankruptcy too. Include these payments as monthly expenses.

Medical Expenses

Include all regular medical costs:

• Glasses or contact lenses
• Prescription medications
• Other ongoing medical expenses

Household Expenses

Household expenses include a wide range of costs:

• Food (groceries and eating out)
• Clothing
• Laundry and dry cleaning
• Charitable or religious donations
• Entertainment and recreation

Personal Care Expenses

Don’t forget personal care costs:

• Personal care products and services
• Hair cuts

Family and Child Care Expenses

Include all family-related expenses:

• Child care
• Education-related expenses
• Child support or alimony (if not deducted from your paycheck)
• Contributions to family or friends

Transportation Expenses

Transportation costs depend on your situation. If you own, lease, or borrow a car, include:

• Gas
• Maintenance and repairs
• Car insurance costs
• Monthly loan or lease payment

If you don’t own, lease, or borrow a car, include:

• Bus passes
• Subway tickets
• Rideshare costs

Installment Payments

Include any monthly payments for leases or installments. Examples include cellphone payments or rent-to-own furniture.

How Do You Estimate Expenses Accurately?

You may not know the exact amount you spend in each category every month. The bankruptcy court expects you to estimate to the best of your ability. Your amounts should be reasonable and accurate.

Tips for Accurate Estimates

Look at recent bills, bank statements, or credit card statements. Calculate the average of your various expenses over the last few months.

Don’t forget expenses you pay annually or occasionally. Some expenses may not occur every month but still need to be included. For example, if you pay car insurance once every six months, divide that amount by six. That gives you your monthly expense number.

Household expenses can be harder to estimate than other categories. The IRS’s National Standards can help you. They show typical expenses based on household size.

Include All Household Members

You need to include regular monthly expenses for yourself, your dependents, and anyone else in your household. Include expenses for anyone whose income is listed on Schedule I.

IRS National Standards Reference

The IRS publishes national standards for out-of-pocket expenses. These standards vary by household size:

• One person: $839 per month
• Two people: $1,437 per month
• Three people: $1,619 per month
• Four people: $2,129 per month
• Each additional person: add $394 per month

IRS National Standards as of April 2025

How Does the Bankruptcy Court Use Schedule J?

Schedule J helps the bankruptcy court and trustee understand your current financial situation. It shows what you plan to spend each month after your bankruptcy case is over.

When they compare it to your income from Schedule I, they can see your disposable income. Disposable income is money left over after covering your basic needs.

Impact on Chapter 7 Cases

If you’re filing Chapter 7, the trustee may look closely at your expenses. They want to see if your expenses seem too high or unreasonable. If they do, and if you appear to have disposable income to pay creditors, the trustee might ask the court to convert your case to Chapter 13 instead.

The court may also use Schedule J to decide if you can afford to reaffirm certain debts. Reaffirmation means keeping a debt after bankruptcy, like a car loan. If your budget shows you can keep up with the payments, the court may approve the reaffirmation agreement. If your budget shows you may struggle, the court may deny the reaffirmation.

Reasonable vs. Unreasonable Expenses

The court doesn’t expect you to live without any comfort or convenience. But your expenses should reflect a modest, necessary lifestyle.

If something stands out, the trustee might ask you to explain or provide proof. Large entertainment costs might raise questions. Luxury items will likely be challenged. High charitable donations may need explanation.

An expense is more likely to be seen as unreasonable if it’s way above average. Recently started expenses also raise red flags. It helps if you can show a consistent history of that expense. If you can’t show it’s necessary or long-standing, the trustee may challenge it.

Getting Help With Schedule J

Filling out Schedule J accurately is crucial for your Chapter 7 bankruptcy case. Small mistakes can lead to delays or complications. Working with a bankruptcy attorney ensures you complete the form correctly. An attorney can help you determine which expenses are reasonable and how to document them properly.

You can speak with a bankruptcy attorney for free to get personalized guidance on Schedule J and your entire bankruptcy filing.