House on Chapter 13

[meetsv]

[justbroke]

I'm meeting with my yer next week, I will be asking this question to him but I want to have some opinions before the meeting. My house value is 108000 according to zillow, the mortgage on the house is 239000, as you can see we are way upside down. We fell behind on the payments, now the Mortgage company wants 2100 per month instead of the 1866 per month before we fell behind. It really does not make sense to keep the house, but if we decide not to keep it what's the impact on the payment plan will be, I will not be able to rent another house for less than 1500 or 1600, so the 912 that the IRS is giving us in the means test is not enough. Any advise will be greatly appreciated.

I can't tell you what your disposable monthly income (DMI) is because I don't have access to all your expenses and income. You would need to run the Means Test (try it at LegalConsumer.com) and see for yourself. There are too many factors which go into calculating.

Therefore, I can't say that the difference would be dollar for dollar against your DMI.

Just because you don't want to rent for $912, doesn't mean the Trustee and creditors will allow you to rent for more. You'd have to prove that that amount can't rent an "apartment" or other residence for that amount in your area. Yes, you may need to move to somewhere you don't like, but that's not the unsecured creditors' problem. If you can prove that apartments, not homes, are $1,500 a month then you'd have to submit that evidence.

The way you worded it... "will not be able to rent another house for less than" is very indicative of what you are comparing the IRS standard to. The IRS standard is generally for an apartment, not a house.