13 to 7 Conversion & Surrender Question

[BreatheEasy]

Background: we are in month #15 (out of 36) of a confirmed plan in which we pay $400 per month. Our plan, confirmed in April 2010, includes a mortgage payment of $2,300.00 paid outside the trustee's office. Although over the median for our area, we demonstrated negative income (-$100.00/month) to qualify for a 36-month plan.

Current situation: there is a strong chance of a new job offer that would require relocation - which changes our desire from keeping the home (currently an estimated $30,000 underwater) to surrender. I am anticipating equivalent compensation to current income.

Question: What are the likely possibilities in this situation? We are able to conceive of the following:
1) Convert to chapter 7 if possible (however, given the standard IRS housing allowance for the area of $1,000, would we even qualify since the drop from $2,300 would give us positive disposable income?)
2) Continue the chapter 13 with an approximate increase in plan payment of $1,300.

Does anyone see other possibilities? We obviously will be consulting with our attorney when/if the job offer is actually received, but would like to get feedback beforehand.

Thanks in advance!

[newbie2]

Background: we are in month #15 (out of 36) of a confirmed plan in which we pay $400 per month. Our plan, confirmed in April 2010, includes a mortgage payment of $2,300.00 paid outside the trustee's office. Although over the median for our area, we demonstrated negative income (-$100.00/month) to qualify for a 36-month plan.

Current situation: there is a strong chance of a new job offer that would require relocation - which changes our desire from keeping the home (currently an estimated $30,000 underwater) to surrender. I am anticipating equivalent compensation to current income.

Question: What are the likely possibilities in this situation? We are able to conceive of the following:
1) Convert to chapter 7 if possible (however, given the standard IRS housing allowance for the area of $1,000, would we even qualify since the drop from $2,300 would give us positive disposable income?)
2) Continue the chapter 13 with an approximate increase in plan payment of $1,300.

Does anyone see other possibilities? We obviously will be consulting with our attorney when/if the job offer is actually received, but would like to get feedback beforehand.

Thanks in advance!

More than likely the trustee will want to see your plan increased by the difference between the current mortgage payment and your new rental amount. Converting with that much disposable income wouldn't be an option.

Please make sure your attorney will be going to bat for you for moving expenses. (Perhaps a couple of months of the lower payments to the plan, then an increase later.)