Going back to school and Chapter 13 Question.

[espo1357]

Currently in a 13, and considering going back to school for a two year program.

Now, I understand that I can convert to a 7, and let go of the house.

but, what if I decide I want to keep the home, and rent it out?

can I stay in the 13 (suspended payments)? The reason I want to stay in the 13 is to remove the second mortgage.

in the long term, if I just rent the underwater property, I think its a good move.

any thoughts on this?

Thanks.

[newbie2]

Currently in a 13, and considering going back to school for a two year program.

Now, I understand that I can convert to a 7, and let go of the house.

but, what if I decide I want to keep the home, and rent it out?

can I stay in the 13 (suspended payments)? The reason I want to stay in the 13 is to remove the second mortgage.

in the long term, if I just rent the underwater property, I think its a good move.

any thoughts on this?

I'm a bit confused as to what you are asking. Suspend the payments? If you want to stay in a Chapter 13 and have a successful discharge (in order to strip the 2nd) you have to keep paying your plan payments.

If you are asking if you can take a 2 year break from payments while you are in school the answer will most likely be a resounding no.

You have to live somewhere while you are in school. You really need to talk to your attorney to find out if you can 1: Take on the extra debt that school will surely mean (living expenses, tuition, school expenses) and 2: Renting your existing home.

[espo1357]

I'm a bit confused as to what you are asking. Suspend the payments? If you want to stay in a Chapter 13 and have a successful discharge (in order to strip the 2nd) you have to keep paying your plan payments.

If you are asking if you can take a 2 year break from payments while you are in school the answer will most likely be a resounding no.

You have to live somewhere while you are in school. You really need to talk to your attorney to find out if you can 1: Take on the extra debt that school will surely mean (living expenses, tuition, school expenses) and 2: Renting your existing home.

Well, the school is not close to my home, so I would be moving to go to school. I want to keep the home, and staying in the 13 is the only good move for keeping the home (as the second get removed after the 13 is dismissed).

I guess I would just have to convert to the 7 OR payback the second mortgage if I wanted to keep the home.

Looks like I have to decide on keeping the home or going back to school.

Time to call the lawyer.

[NowImDownInIt]

It's not an either/or situation in my opinion. Maybe you should just wait on going back to school or choose a school that IS close to your home. Any reason you must go to this particular school?

[espo1357]

Well, the schools I want to go to are out of state.

Maybe my dream of going to business school is just not going to happen. Its not a big deal, but I always wanted to go for that and now, as I approach 40, the odds get lower and lower that it will happen. This BK really set me back because its 5 years of hell.

I am learning that in life, you just can't have it all. Its a good revelation, but it stinks too.