can you change your mind about surrendering?

[hoswins]

I've been in a chapter 13 for over a year now. I'm paying 100% of secured debts in the plan. My home is underwater, in a bad neighborhood that is contantly getting worse, and is need of major repairs. Needed repairs include a new roof, warterproofing, plumbing work, and a new garage. I just don't have the money to pay for all this. My husband left me and my 2 kids about 2 years ago and i dopn't have any family to help me.
A month ago I found a place to rent, gave my lawyer a copy of the lease agreement, and asked her to file a plan modifcation to surrender my home. The condo is in a nice area and the owner didn't care about my bankruptcy. After 3 weeks, I called my attorney and asked how the plan change was going. Did the trustee accept the new terms and when would my plan payments be changed? She stated she had not even filed the paperwork yet. I haven't paid the deposit for condo or the 1st month's rent yet. I was waiting to see if the trustee would dispute it. Now the owner of the condo is tired of waiting for me and wants to rent to someone else, which is understandable.
What should I do? I'm afraid if I don't rent this condo I will have a difficult time finding another place to rent with a Chapter 13 on my credit report. But I can't pay the 1st month's rent, security, deposit, and moving costs until my plan payments change. I'm paying $883 every two weeks into the plan. Any advice would be greatly appreciated.

[hoswins]

Can anyone help? I've been reading these boards for a few days now and I've recevied so much helpful nifo. I just want to know if I can call my attorney back and say that I changed my mind about surrendering the house even if she's already submitted the paperwork to the trustee?

[Pandora]

Unfortunately everything rests on your lawyer filing the paperwork so there isnt much you can do at this juncture until thats done and approved by the trustee. You stated you're paying 100% all secured debts in your Ch. 13 - - are you still going to be able to pay 100% if you surrender the house? Is the rent on the condo less than your mortgage now? Have you checked with the previous renters to see what the utilities run every month? If you try to get set up on a budget amount for electric/gas - it will be based on the previous tenants usage, not yours - so it could be quite higher than what you're paying now as well as if you will be required to pay security deposits to any utilities.

These are things you definitely should check into before signing any lease.

Good luck and I hope your lawyer gets things moving for you!

[jetsfan2010]

Pandora is right, you cant do much until your attorney does the paperwork. You shouldnt have any issue, assuming the rent for the new place is less than the mortgage payment. Renting a place with an active chapter 13 on your report usually means a security dep (I paid mine equal to 1 mo rent).

[hoswins]

Thanks for the advice Jetsfan2010 and Pandora. You both brought up some good points that I hadn't considered. I thought that as long as I had utilities in my name now, I wouldn't have to pay any deposits to the utility companies. The rent payment is $200 more than my current mortgage payment, so will my payments to the plan decrease?
I have checked with my insurance company and my auto insurance would go down ~$50 a month and the renters insurance is cheaper than my homeowners insurance. I will also save a significant amount by not paying private school tuition for my son. We'll be in a better school district so I can send him to public school. That's a savings of $400 a month.

[Pandora]

I thought that as long as I had utilities in my name now, I wouldn't have to pay any deposits to the utility companies.

The rent payment is $200 more than my current mortgage payment, so will my payments to the plan decrease?
I have checked with my insurance company and my auto insurance would go down ~$50 a month and the renters insurance is cheaper than my homeowners insurance.

I will also save a significant amount by not paying private school tuition for my son. We'll be in a better school district so I can send him to public school. That's a savings of $400 a month.

Paying deposits depends on if the electric company services that area - sometimes you have different servicers - where we are we have 2 electric providers - all depends on where the line is drawn so to speak. Could also depend on if you are current or behind on payments, but at any rate, a budget amount (if you do so) will still be based on previous tenants usage.

Rent is more than your mortgage - that may or may not be an issue for the trustee. I guess it depends on what the rest of your CH. 13 plan consists of since you stated its all secured - as well as what the IRS Standards are. Paying your sec. deposit, 1st month's rent and moving expenses may end up being an issue for you unless you have that money all set aside. It can take a while to have your plan amended and confirmed so to speak by the Trustee. You said you couldnt get that money together until the amendment to your plan - how long is that going to take you to save up? You cannot stop your plan payments while you're waiting to see if its approved, so you need to have that money on-hand. Something to think about.

Enrolling your child into public and out of private will not necessarily save you any money unfortunately. Unless you can amend your schedules because you are under the IRS allowances, that $400 savings may go back into your CH. 13 plan unless you are 100% certain you are actually paying 100% of all debts - secured and unsecured. You didnt mention if you had any unsecured debts in your plan or not. Dont rely on 13DataCenter as its not accurate most times - what does your confirmation order state that was signed by the judge? It should have a % listed.

[hoswins]

Thank you Pandora. Those are good points to consider. I will locate my paperwork and see exactly what it says.