Home loiss during Chapter 13

[chloe0724]

Has anyone lost their home during their 13 and continued the payment plan? Did your Trustee increase your payments? What happened?

[AZNoName]

Lose your home as in surrendered it? or let it foreclose after confirmation?

[chloe0724]

foreclose or short sale after confirmation

[AZNoName]

Not sure, but your Ch13 payment plan should have taken your mortgage payment into account. Do you plan on renting? Are your mortgage payments similar to what you will pay in rent, and is that amount allowable and reasonable for your area?

[justbroke]

If this happens, your attorney needs to file a Motion to Modify Confirmed Plan. Depending on your District you may need to file a new Official Form B22C (Means Test) in order to calculate your payment. This may be a smart thing regardless. You will get a new allowance for renting. You would need to find something in that range or be prepared to fight the motion to modify.

After the calculation, your payments to the Trustee (in the Plan) may actually increase if your mortgage payment (combined with taxes and insurance) exceed the local rental rates for your family size.

[1dayatatime]

But, don't forget that you will also lose the interest and tax deduction on your taxes when you re-calculate.

[justbroke]

And that, my friends, is exactly what I experienced. The tax deduction can be significant when itemizing!