Plan that may be confirmed

[cjsgac]

Hello,

We filed bk in 8/10 and still going back and forth with the trustee to confirm a plan. I think we are FINALLY getting close to having our most recent plan confirmed. My question is, since there is a provision in this new plan, that we will turn over the non exempt portion of our tax refund for the next 5 years to the trustee, does it make sense to foreclose on our house, as we are upside down on it and it needs a lot of cosmetic work.

If we do foreclose on our house, what are the chances of someone renting to us?

Thank you!

[LadyInTheRed]

I don't understand what turning over tax refunds to the trustee has to do with the decision of whether to let your lender foreclose on your house. The decision of whether to keep the house should be based on how much underwater you are, whether you can afford your mortgage and the cost of renting vs. ownership.

Some people will rent to you after a foreclosure and some people won't. Of the people who will rent to you, some may require a higher deposit. You will be able to find a place to rent, but it may be more difficult.

Does your current plan provide that you will keep the house and continue to pay the mortgage? If so, you will need to amend your plan if you decide to give up the house. Also, a chap 13 does not discharge the mortgage debt unless you surrender the house in the BK. You can't just decide to stop paying and leave the house later like you can in a Chap 7.