Selliing of home and plan payment.

[DoubleWhammy]

I am currently in a chapter 13 and considering selling the home and renting to save money and live a not so month to month lifestyle as the BK payments 13 pretty take everything.

The questions I have is, Will my plan payment increase from what I am paying on mortgage ($2100) to what is rental ($1500)? If so, what are some options to not having my plan payment increase. I'm only 6 months into BK13.

I will clear about $40K from the sale of home and these funds are exempt as is Middle District, Florida.

[tissa]

I'm not sure what will happen but I would think it's possible that your payment will increase. Since I'm pretty sure when you sell any large items like cars or homes you have inform your lawyer and they have to inform the trustee. I would recommend discussing the idea with your lawyer and maybe they can run some numbers for you.

Have you looked at rent increases in your area lately? Keep that in mind cause if you get a rental for $1500 and you have 4 years or more left on your chapter 13 it might increase to $2100 in a short amount of time, here in California this happens but some other states it might not be a problem but it's definitely something to think about.

Have you considered doing something smaller like changing your cell phone bill to a prepaid plan for example. When I did this I saved almost $100 a month but I also went to a plan where I had little to no data and not everyone can handle that but if you can do it, it will free up some money. Or cutting cable might help. Small things like this don't usually have to be reported to your lawyer or trustee.

[justbroke]

It is very likely that the Trustee will want the difference, if that is DMI. Your attorney may suggest doing another Means Test or Schedule I/J to account for any other changes. You may have been in a Chapter 13 to save the property (arrears) so if that's the case, then you may see some relief from the monthly payments anyhow, once you sell the home.