Not reaffirming house, does that put me over?

[Falcon]

I have decided not to keep my house, and my lawyer said my case would be a Chapter 7......question....by not paying the $870 mortgage payment, is that considered "disposable income" now and will it put me into Chapter 13?

[newbie2]

I have decided not to keep my house, and my lawyer said my case would be a Chapter 7......question....by not paying the $870 mortgage payment, is that considered "disposable income" now and will it put me into Chapter 13?

The disposable income would be the different in your house payment and the rental amount allowed. For example, if your allowed rent is $600 and your house payment is $870 then the additional disposable income would be $270.

[geye]

The disposable income would be the different in your house payment and the rental amount allowed. For example, if your allowed rent is $600 and your house payment is $870 then the additional disposable income would be $270.

Based on what I've found, that's only if you were barely squeaking by on the means test to begin with. For us, the difference between house/taxes/ins/etc. and the allowed amount for housing is +265, but since our DMI was so negative with the house, we're still negative when we use the IRS standard.

As for schedule J, our attorney has told us we can use a theoretical rent and provide comps (listings) to back up our number we use.

When I was reading court cases this weekend, I found a trustee that said that the difference between the house payment and the IRS standard should fund a 13 but the court ruled that other areas of the guy's schedule J were under the standards and that extra money should be used to increase his living costs. Without doing that, his chances of the 13 failing were too high.

[newbie2]

Based on what I've found, that's only if you were barely squeaking by on the means test to begin with. For us, the difference between house/taxes/ins/etc. and the allowed amount for housing is +265, but since our DMI was so negative with the house, we're still negative when we use the IRS standard.

As for schedule J, our attorney has told us we can use a theoretical rent and provide comps (listings) to back up our number we use.

When I was reading court cases this weekend, I found a trustee that said that the difference between the house payment and the IRS standard should fund a 13 but the court ruled that other areas of the guy's schedule J were under the standards and that extra money should be used to increase his living costs. Without doing that, his chances of the 13 failing were too high.

The OP didn't let us know whether he would be in the negative or not by using a rental payment instead of his mortgage payment, as was what happened in your case. Also, what one district takes as practice seems to vary considerably with other districts.

[geye]

The OP didn't let us know whether he would be in the negative or not by using a rental payment instead of his mortgage payment, as was what happened in your case. Also, what one district takes as practice seems to vary considerably with other districts.

Exactly. And so to give only one scenario could leave the OP with the wrong impression.