What happens to my payments if my rent goes up

[huskydawgs]

Hi:

Here's my situation.

I'm about 1 1/2 years into my Chapter 13, paying off a 60 month plan. After figuring out all my expenses, my amount I'm paying back to my Trustee is $758/month (based on my rent being $850).

Well, my roommate (and owner) of the condo is selling the place and I will have to find a new place. I'm trying to find a place for the same amount of rent, but might not be able to find something in the $850 neighborhood.

If for some reason, I can only find a place that is $200 more (such as $1050/month) should I notify my lawyer and Trustee that my rent went up $200 and it would in effect lower my Trustee payment from $758 to $558 (lower it $200 because of the rent difference).

Please let me know.

Thanks,

[newbie2]

You need to take a look at the amount of rent that is allowed in your county/area and start from there. If 850 is all that is allowed, then you may have difficulty getting the trustee to approve an amount over that. However, each district can oftentimes be different in what is allowed to happen during your plan. Before you sign on the dotted line for a new lease give your attorney a call to discuss your new situation. Don't wait until after you've incurred the new expense to do this.

[MSbklawyer]

Chapter 13 plans can generally be modified when there are material changes in your financial circumstances. But your expenses, including your rent, have to be reasonable. And keep in mind, that when seeking a modification, you'll have to present the your complete financial picture. So, if your income has gone up during this time, that will have to be taken into account as well.

[huskydawgs]

Yeah, that's why I thought. If I have to present my whole financial picture and re modify my bk, it might just be easier to incur the extra rent expense.

I just want my 60 months to go smoothly with no hiccups.