renting out house during chapter 13 (texas)

[racheltx]

I'm trying to get all my options figured out. We have around $60,000 in CC debt and $20,000 car. I'm assuming they will make us pay it all back when we file and just cut our extras down to nothing. If we file chapter 13 and then decided to move in with my parents and rent our house out to pay the debt off faster, is that allowed? Like would they know we did that? So our mortgage is 2650. We were thinking of renting the house out for the cost of the mortgage and taking that 2650 and applying it to our chapter 13 payments for one year just to make a bigger dent in it. And then move back into the house and continue on

Anyone know about how much payments are for that much debt a month in a 13?

[justbroke]

Unless you are in a 100% Chapter 13 plan, do not make "additional" payments into your plan as it helps absolutely nothing. You should really seek advice from your attorney on this. The question will be whether that $2,650 that is being paid by a renter/lessee would "need" to fund the plan. There is a decent amount of financial analysis that you will need to perform including, perhaps, recomputing the Means Test.

Never assume that they are going to make you pay it all back (put you in a 100% plan). The means test will be the "beginning" of the inquiry into what you can afford to pay creditors. While it is an arbitrary test (a judge's words, not mine), it will at least establish what you "may' be able to afford in a Chapter 13. The test continues by using the more subjective Schedules I and J which will look at your income and your direct expenses.

Please make sure you shop around for attorneys and "interview" 3-5 of them before settling on one. Also ensure that you explain what you want to rent the property and get their take on what will happen in your specific district.