Downsizing before filing...or should I?

[sebaco]

Situation -

Just bought a cheap car so I qualify for the Chapter 7 means test. Which I do now..barely.

Am a homeowner, am current, and have $40k equity. However, I have $60-$70k worth of debt at 28%, behind on all for at least 6 months, thus the filing.

The question is this. Planning to file in 3 days, however I also plan on renting out the home and moving to a small apt in 5 weeks.

Is my financial situation "frozen" in time...or would this rental income a) make the house non-exempt and/or b) be added to overall income and push me out of the means test?

Thanks!

[Maine]

If you can wait to move until after your 341 hearing, or even after your discharge 60 days later it would reduce all chance of objection to your schedules. Because yes, if you list your mortgage as an expense and but then move immediately to reduce that expense, they can object.