Need Help Quickly - Significant Life Changes Coming - In Chapter 13 Now

[imapackerfan]

Obviously I have a call into my attorney, but I'm hoping someone can give me an idea of what to expect.

I'm currently in a chapter 13 - Not 100% payback. It's a 5 year plan, I'm about 15 months into it. No issues so far...

Due to my wife's ongoing health issues we have to move back closer to our family. Her and my son are currently living with my mother while I live in a different state (this is due to her health conditions)

We would now like to move back to be closer to family. Here's our plan. I'm specifically interested in the living arrangement we are looking at.

We are planning to have my parents buy a house and rent it to us (nothing funny, it will have a real lease and everything) figure it will be good for their retirement and allow us to live where we want. IS THIS AN ISSUE?

Next - Given our current living situation, can I use the rent on the second house as an expense? I don't know how long it will be before I can move there, probably at least 6 months. I can float it, so it's not a huge deal, but it would be great if I could use it as an expense.

Lastly - I'll find another job prior to moving, but it's really unlikely it will pay even 1/2 as much as the one I have now. I'm assuming when this happens my plan can be converted to chapter 7. Is this a correct assumption?

Thanks for looking and looking forward to the answers.

[newbie2]

It won't be a problem paying rent to your parents, they will simply be landlords. As far as taking it as an expense, do you mean an additional rent expense? If that is what you mean, then it will probably be a no go.. I doubt a trustee will allow you to pay rent in 2 places to the detriment of your unsecured creditors. Now if you can squeeze that out of your existing budget (food, clothing, gas, etc) then it won't be a big deal. But I surely wouldn't expect to go in with an amended plan to include 2 rent expenses and have it fly with the trustee.

As far as when you move and your decreased income, yes..if you qualify for a Chapter 7 you should be able to convert.

Good luck to you and I hope your wifes health gets better.

[imapackerfan]

Thank you for your reply. I was talking about taking it as an additional expense. I figured it was a no go, but thought I'd throw it out there.

[newbie2]

You're welcome. I hope you can join her soon and the 2 rents issue will be over with quickly.

[boomerkae]

Thanks for this question and answer - we are moving ourselves in the next month or so and will be renting a house from my dad. We are working on drawing up a rental agreement!