Anyone file a Chapter 13, and electing to surrender your home?

[optimistic1]

What did you or your attorney put in your expense schedule for Rent/Mortgage? If you are in foreclosure already and are surrendering the property, you cant list the mortgage payment, so what do you put? A proposed amount for rent???

[HHM]

Generally, you will put in the IRS allowed expense.

[optimistic1]

The TT has a guideline sheet that they use, they say it cant be no more than 35% of Gross income.

Can this be found on IRS or US Justice website?

[HHM]

If the TT has a local guideline, then use that.

[optimistic1]

It's generous, I could rent a huge house for that kind of money, not that I will, but I could.

[researchnerd]

We're letting our house go in a Ch13, but we're already renting somewhere else so that's the amount we used.

If your local guideline is more than you'll end up spending, it could give you a little wiggle room in your budget, at least initially. Just be aware that the trustee can ask for an update on your expenses periodically, so your amount to the trustee might go up a bit if they find that your rent is lower than expected.

[bkstuff]

For you folks that are surrendering your home - If you have a second mortgage, would that still be considered "unsecured" if you owe less than what is owed to the first mortgage?

[Billssuck]

I just filed a modification to our chapter 13 last week to surrender our house and we told him an amount that I had done some research on for an average house to meet our needs (a little on the high end but still within reason) and that is what he put on our expense sheet. It has been filed and I should know within 20 days whether or not the trustee approved it. BTW it was way below 35 percent of our income....and our monthly payment to the trustee stays the same ($125/mo). Reason for modification is a loss of wages for my husband by a tune of $1,000/mo.