OK, imagine you've claimed a business bankruptcy. Are these personal expenses excessive?

[OmahaBlueDog]

"The Nebraska Economic Development Corp., which lent $1.48 million to Ted and Kathryn Baer for a business that later closed, is contesting the couple's bankruptcy filing as an attempt to escape their debts.

Monthly expenditures of $2,000 for food, $1,500 for home maintenance, $4,000 for car payments, $850 for recreation and $800 for clothes are excessive, the nonprofit corporation said in its motion to dismiss the Baers' Chapter 7 bankruptcy filing. "

http://www.omaha.com/article/20100814/NEWS01/708149815


They owe $305,000 on a $622,000 home, according to the article. Their reported income is just over $240K. The debtor, Mr. Baer, claims that the $1,500 in monthy maintenance expenses is because his house is 30 years old. I live in a 30 year old house, and I've had some whoppers, but not nearly that much.

[Greyhound]

1. Bankruptcy laws (especially post-'reform') have nothing to do with sanity

or need, merely how good a lawyer you can afford and how agreeable a judge you get.
:kick:

[OmahaBlueDog]

8. My, my - it is different being rich, isn't it?

God help one of us who's past due on those payments for that 2 grand we owe to Citibank/Discover/Capital One/etc. But owe 14.7 million - why Hell - that's no problem.

Here's an excerpt from another article on the Baers I found:

http://www.omaha.com/article/20100615/MONEY/706159952



"Ted Baer has been with Alan Baer & Associates for 23 years. As the company president, he made $160,710 last year. Kathryn Baer was paid about $47,000 as secretary to the Alan and Marcia Baer Foundation.

Court filings show that Baer and his wife are making about $13,000 a month but are spending $16,170."

You tell me, how many DUers are getting by on 4 months of their income -- or less?

[Greyhound]

10. I believe the only thing preventing open revolution is the fact that so few have any clue just how

differently they live.
:kick:

[Hannah Bell]

2. $2,000 for food? who are they feeding?

[rucky]

3. Holy cow!

They were out of control.

[hobbit709]

4. Seems like they were businesspeople like Bush.

A friend of mine filed bankruptcy a few years ago. Her lawyer advised her to get a new car with payments under $300/mo to replace her 15 year old truck before she filed. $4K a month for car payments-these idiots need to learn how live much cheaper.

[davidinalameda]

5. $800 a month for clothes?

how many people are in that family?

[realisticphish]

6. fuckin' A

I don't think I've spent that much, total, on clothes in the last decade.

[OmahaBlueDog]

7. Mrs. OBD about exploded at that

She indicated (paraphrasing, and removing the profanity) that she doesn't spend that much on clothing for a family of four with two growing kids in a year, and that she busts her butt to keep what we have stain free enough to be reworn.

[geckosfeet]

9. 4k/mo for car payments?!?!

Please. Make it stop.

My used car cost 6.5k. It's payed for.

[OmahaBlueDog]

11. To be fair, they still owe some money on a car they no longer own

"The Baers have a $305,000 mortgage on their $622,000 home in Regency and are making payments on a 2010 Volvo and a leased Buick Enclave. They want to keep their home and those cars, but they told the court earlier that they would surrender their 2006 Maserati luxury sports car. They still owe $35,000 on that vehicle."

http://www.omaha.com/article/20100814/NEWS01/708149815

...so some of that $4,000, presumably, is owed on the surrendered 2006 Maserati. I wouldn't want anyone here leaping to the wrong conclusion about that particular figure.

[geckosfeet]

15. Jeez. I feel bad now.

:blush:

They had to give up the Maserati.

Heartbreaking story. Heartbreaking

[fizzgig]

12. their monthly expenditures are equal to what i've made YDT

i could feed my husband and myself WELL for at least four or five months on what they spend in a month. absolutely disgusting.

[OmahaBlueDog]

14. Give me the two grand and send me to Costco

They'll eat like kings and have a lot leftover.

[madrchsod]

13. from my personal experience.....

i think they`ll have a hard time filing chapter 7. i do know i`d like to be making the attorney fees....