Will trustee give us a hard time for our rent amount?

[goblue]

We are surrendering our home with our chapter 7 (filing end of Jan). Our current mortgages are about $2,550-$2,600 per month. If we can find rent at about the same amount ($2,500) for a property willing to accept our dogs and credit - would the trustee tell us to find something cheaper and force us into a chapter 13? Also, this rent is more than the county allowance for rent/mortgage -- how is that handled on the Schedule J? Do I only list the county allowance or do we list the full amount? Because we want to keep our 3 dogs (if possible), we are looking now instead of waiting longer. We found a really nice house in a better school district that doesn't have issues with the dogs. We're not sure if the dogs + credit will create a problem though. They want to start a lease ASAP, so we'd have to give security deposit and sign lease before we file.

The mortgage payment itself wasn't the reason we were filing chapter 7. We originally planned to keep our house, but then figured it wasn't the amount we have outstanding (several payments). Plus, the house needs some big repairs soon (roof, Furnace/AC, plumbing...etc).

Any thoughts?

thanks.

[backtoschool]

Rent above the county allowances will be a red flag to the trustee. The trustee may use the difference to push you into a chapter 13. The fact that you will have accrued that rent rate recently, right before filing, will not help.

Unless you are in the nyc area or the bay area, that is a relatively high rent. If you are in the midwest or in michigan, (as I am guessing from your name ) that is WAY over the average rent.

[goblue]

Thanks for your reply. I have an email into my attorney too.

We are in Illinois. Our county allows $1703 for rent/mortgage expenses, however the county of this particular home only allows about $1500. When I met with my attorney's associate a few weeks ago, he didn't mention anything about limiting our rental costs (however at that time we were looking at a house around 2K/month).

So, for now...without a lease, how do we fill out our Schedule J with regards to rent costs? Honestly I think we would be looking between 1700-2000 in our town. What happens if we put the $1703 and then our rent ends up being $1900 (if we were to finalize a lease before 341 and/or discharge)? Do we have to amend our schedule J?

Thanks!!

[backtoschool]

Thanks for your reply. I have an email into my attorney too.

We are in Illinois. Our county allows $1703 for rent/mortgage expenses, however the county of this particular home only allows about $1500. When I met with my attorney's associate a few weeks ago, he didn't mention anything about limiting our rental costs (however at that time we were looking at a house around 2K/month).

So, for now...without a lease, how do we fill out our Schedule J with regards to rent costs? Honestly I think we would be looking between 1700-2000 in our town. What happens if we put the $1703 and then our rent ends up being $1900 (if we were to finalize a lease before 341 and/or discharge)? Do we have to amend our schedule J?

Thanks!!

If you don't have an actual lease yet, then you have to put the irs allowable figures down on your schedule.

If you end up renting for more, then you could amend your schedule but that will only be necessary if you end up in a chapter 13. In a chapter 7, once you pass the means test and file, you will not have to amend your schedule if your expenses are actually higher than what you put on your schedule, since you would still pass the means test with the higher expenses.

[tdawg]

Why not just stay in your house rent free for a few months? If I were in ur sit., that's what I'd do...

[goblue]

Why not just stay in your house rent free for a few months? If I were in ur sit., that's what I'd do...

We have 3 dogs that we are trying desperately to keep in this process. I'm not sure how hard it will be to find a rental willing to take them all so we're starting now...

[ANewLeaf]

Why not just stay in your house rent free for a few months? If I were in ur sit., that's what I'd do...

My attorney told me it was best if we went ahead and got an apartment due to the fact that by the time we file and are done with everything, then try to look for somewhere to live we might not be able to get anything at all since it would say "BANKRUPTCY" on our credit report.

OP, I also undrstand what you mean about the dogs and everything, we have 2 and needed to find somewhere that would allow them.

[htownvideo]

It sucks

Im looking at these forums and praying to god i never have to file a BK..

But I understand the love of the dogs but isnt the point of a BK to help you in your financial troubles.. It seams to me that your Priorities are out of wack..

Let the dogs go, get a cheaper rent and save the money so your not in the same boat 10 years from now.

[anabell36]

Im looking at these forums and praying to god i never have to file a BK..

But I understand the love of the dogs but isnt the point of a BK to help you in your financial troubles.. It seams to me that your Priorities are out of wack..

Let the dogs go, get a cheaper rent and save the money so your not in the same boat 10 years from now.

I would live in a cardboard box before I'd give up my dog. In my opinion money can never take priority over a living thing.

That being said, is there a possibility of the OP finding a rental in a less expensive area?

[htownvideo]

it is a living thing

The issue isn't the dog her is the problem and I have been trying to let ppl in on the secret if you can't pay your bills for whatever reason you just don't want to your sick, fired, underpayed what have you. If you can't pay your bills then why would you think your the best person to take care of that animal.

Granted if its a child it will have to struggle with you but a pet is something that can be given to a family member or friend during your financial problems cause three dogs have to be costing you atleast a few hundred a month in food, frontline, heartguard and vet bills. And if your not able to afford those things then you should do what's best for the pets and give them up living in a cardboard box might be fun but you really think its fair for the dog.

I think you need to reavaluate what's important and as far as I can tell they need more in life then the dogs.

There is no animal in the world that's worth hundreds of extra dollars a month in rent. Just to keep them.

Also I know it really sucks but maybe keeping one and giving the other two away to a more stable home for now would be best for all.

Now I'm not saying you have an unstable home but let's be honest you didn't file bankruptcy because you are great at finances especially if your willing to pay 2k plus in rent.

I'm not sure how many children they have but if you only have on or two maybe downsizing to a 3 bedroom apt isn't such a bad idea.

[anabell36]

The issue isn't the dog her is the problem and I have been trying to let ppl in on the secret if you can't pay your bills for whatever reason you just don't want to your sick, fired, underpayed what have you. If you can't pay your bills then why would you think your the best person to take care of that animal.

Granted if its a child it will have to struggle with you but a pet is something that can be given to a family member or friend during your financial problems cause three dogs have to be costing you atleast a few hundred a month in food, frontline, heartguard and vet bills. And if your not able to afford those things then you should do what's best for the pets and give them up living in a cardboard box might be fun but you really think its fair for the dog.

I think you need to reavaluate what's important and as far as I can tell they need more in life then the dogs.

There is no animal in the world that's worth hundreds of extra dollars a month in rent. Just to keep them.

Also I know it really sucks but maybe keeping one and giving the other two away to a more stable home for now would be best for all.

Now I'm not saying you have an unstable home but let's be honest you didn't file bankruptcy because you are great at finances especially if your willing to pay 2k plus in rent.

I'm not sure how many children they have but if you only have on or two maybe downsizing to a 3 bedroom apt isn't such a bad idea.

Believe me, my dog would be well fed and visit the vet regularly while we were living in the cardboard box. As it is now he has his own room next to my son ;) He'll be taken care no matter what the condition of my finances. Besides the trustee may have no issue with the OP's increased rent. The trustee had no problems with my case at all even though I was told that being 35000.00 over the median income would be an issue. He also had no problem with me choosing to keep a car with payments well over the suggested amount. Not everyone who files bankruptcy does so because their bad with finances. Sometimes just one occurrence can force the issue.

[goblue]

I understand what you are saying and we are looking at lower rents as well. We are keeping our options open and will do everything we can to keep our dogs. Living in a *house* is important to me and my husband. I truly believe we can get ourselves out of the financial mess and have a good rental until we are in a position to buy again.

[ANewLeaf]

Believe me, my dog would be well fed and visit the vet regularly while we were living in the cardboard box. As it is now he has his own room next to my son ;) He'll be taken care no matter what the condition of my finances. Besides the trustee may have no issue with the OP's increased rent. The trustee had no problems with my case at all even though I was told that being 35000.00 over the median income would be an issue. He also had no problem with me choosing to keep a car with payments well over the suggested amount. Not everyone who files bankruptcy does so because their bad with finances. Sometimes just one occurrence can force the issue.

This is true. Sometimes it can just be a matter of "getting in too beep" with CC's or medical bills, but yet you have the money to pay for everything else like mortgage and utilities. Though I do agree OP should probably look for something cheaper to rent.

[anabell36]

This is true. Sometimes it can just be a matter of "getting in too beep" with CC's or medical bills, but yet you have the money to pay for everything else like mortgage and utilities. Though I do agree OP should probably look for something cheaper to rent.

Actually I do too. Perhaps housing in a different area would be cheaper.

[htownvideo]

I understand

Trust me I understand all about finances and how crap creeps up in the most inapropriate times,

I know that not everyone on here is bad with finances and I the first to admit I make mistakes like everyone else.

But there are things I will never do like buy a New car, Buy a home unless its a rental property.

I am only 32 I have a wonderful wife and 2 children, Buying a house in the first place is a waste of money in my opinion.

But I also feel for you and the dogs. We have extra room if you ever need to send one of them to Maine.

-Jay