Moving out of state

[spearmint]

What happens in a Chapter 13 if you file in your resident state but then take a job out of state? Do you merely make the payments to your ex-state? What happens to the ex-state's ability to access your new resident state tax refunds and to track your income?

[optimistic1]

I wasnt aware of how the ex-state has access to documents, I was under the impression that you mail all that stuff in so many days after filing your taxes.

If you leave state, you continue to make your payments as usual, there is nothing to transfer.

[spearmint]

I wasnt aware of how the ex-state has access to documents, I was under the impression that you mail all that stuff in so many days after filing your taxes.

If you leave state, you continue to make your payments as usual, there is nothing to transfer.

What happens, though, if you do a Chapter 13 in one state and then move to another? what happens to any refunds you might get in the new state? Can the old state track them and make you turn them in to them? Is the old state able to track your earnings in the new state?

[optimistic1]

Nothing happens, you make your payment as usual and you turn in your yearly tax returns, and in accordance with your trustees policy, you mail him your tax refunds.

Just alter your withholding allowances in which you receive nothing.

[trying2getby]

I've been wondering this too.

What if I sell my house? Currently about 1 1/2 years into 5yr plan. I would probably have a net gain of $8-13 on it, after selling expenses. Would the trustee capture this $$$, even though I would need it for moving expenses/rent deposits, etc.?


Ideally, we would like to buy another house. I have heard of people buying a house in a 13 although I can't imagine it happening. We have made EVERY payment on time.

At the area we are looking into, we could buy a little bit bigger house and have a considerably cheaper payment with an fha loan compared to our current horribly high arm loan (currently 8.5).

[lrprn]

What if I sell my house? Currently about 1 1/2 years into 5yr plan. I would probably have a net gain of $8-13 on it, after selling expenses. Would the trustee capture this $$$, even though I would need it for moving expenses/rent deposits, etc.?

If you sell your house and whatever is left on your state's bk exemptions can't protect the sale cash, then yes, it's likely your trustee will take it. Be sure to ask your lawyer to get a reliable answer that matches with your local court's practices and your own unique financial situation.

Ideally, we would like to buy another house. I have heard of people buying a house in a 13 although I can't imagine it happening. We have made EVERY payment on time.

It's very unlikely that a legitimate, reliable mortgage lender is going to lend you money during an active 13 to buy a house. I have no idea where you read that people have done this, but even if it's true (and I highly doubt it is), then it's a one in a million chance. Remember you need your trustee's prior permission to sell your current house and buy a new one. You had better have a really strong reason for needing to do so, and your trustee - if he/she agrees to the sale - will be watching to see what happens like a hawk to see if you have cash from the sale that can be taken for your creditors.

Making your Ch 13 payments on time is excellent - good for you! - but that isn't going to show up on your credit report. Paying your utilities and (if they are reporting) your asset payments consistently over the five years will help to raise your credit scores even during your 13, so be sure to focus on doing that too.

Your best option right now through the end of your plan is to focus on finishing your 13 successfully, then work on cleaning up your credit once you are discharged. It's possible to get a decent private or federal loan just out of Ch 13 - some of our members have done it - and it helps a lot if you had a pretty good financial history before filing with strong loan completions and on-time payments on your credit reports.

At the area we are looking into, we could buy a little bit bigger house and have a considerably cheaper payment with an fha loan compared to our current horribly high arm loan (currently 8.5).

So you have a goal to shoot for. Just don't be overly anxious. Complete your 13 and clean up your credit reports first. Ask your attorney for a good mortgage broker who is used to helping folks just out of bankruptcy - that can make a big difference.

Keep in mind that every hard inquiry on your credit reports brings the score down 3-4 points, so starting prematurely will just make the journey even longer. Be patient. Save up at least a 15-20% downpayment - that will help open the loan doors at lower rates as well.