Will File Soon - Still Have Questions

[braywhite]

I will be filing at the end of July and here is the situation. In process of divorce, wife will surrender the house to me. She will also be filing chapter 13.

1. How much money can I keep in my account after filing. I seem to remember that the trustee will leave on $1500 in account including savings?

2. If I get a raise next year do I have to notify trustee.

3. Can I refi my mortgages (1st and 2nd) under a 13 and if I am successful can do I have notify trustee?

4. House is under water but I need to stay to keep joint custody. If I can rent a room, if I do again to I have to inform trustee?

[newbie2]

Welcome to the forum, and feel free to ask as many questions as you need. I'll try to help you with the first 4.

1) Chapter 13s are a bit different than a Chapter 7 in that you can have money in your bank account as long as you are paying your unsecured creditors a like amount in your plan. For example: If you have $1500 in the bank (and it can't be exempted) then you have to pay back at least $1500 to your unsecured creditors over the life of your plan.

2) That will be up to your district / trustee. During a Chapter 13 your whole "financial house" is under the control of the trustee. Many districts require reporting of an increase in income, some do not. Your attorney will be able to let you know what is the norm in your district.

3) Yes, but it will be difficult to do so. And yes, I do believe you have to have your trustees permission to do so. Note: If your payments become lower that can trigger a request from the trustee for more money to be paid to your unsecured creditors. Also, since your house is "under water" have you talked to your attorney about stripping your second mortgage? Please bring it up. It's one of the perks (if one can call it that) of being in a Chapter 13.

4) That I don't know. I would imagine it could be considered "added income" (most likely would.) Ask your attorney about that one.

Good luck!