Hi,
My ex (of 8 years) is filing for Ch7. We have joint kids that go between our households, so I am trying to keep informed about his case to the extent that whatever happens will affect our kids. I've read through a lot of the archives here to get an idea of the whole filing process and thank the people here who have posted such helpful information.
Here are the facts about exH's BK:
Mortgage (contract for deed) with interest only payments of $1500 (balloon of $500K due at the end of 2012)
Owns two older cars w/out payments.
$2400 per month social security income (benefits his wife's kids receive from her dead husband) - both ex and wife are currently unemployed.
Listed other monthly expenses (household of 5 people) ie food, clothing, entertainment, phone, cable, cell phones etc. puts DMI at -2200
My question is does the trustee look at the DMI and decide what is reasonable for rent, living expenses etc. moving forward? The reason I am asking is, if his contract for deed is cancelled, perhaps he will try to keep renting (he rented the house while he was coming up with the downpayment for the contract for deed). But the rent will at least be $1500 per month (what he pays now on the contract), and perhaps they will go up because the owner will become liable again for property taxes (and back taxes exH has not paid).
Does the trustee get involved in approving what is reasonable for rent etc. moving forward after discharge? It doesn't sound wise for him to keep renting at a rate that is most of his monthly income. (He has not always been unemployed but in this job market, having been fired from his last job, and know this pending BK, he may have trouble finding a job anytime soon.) I know but his wife is quite emotionally attached to the house and I am hoping for his sake that he will not be allowed to move forward with a plan that will defeat the purpose of his Ch7.
Does the trustee limit his involvment to figuring out a fair discharge of the debt, or will he have some say over their future plan if/when he losses his mortgage?
My ex (of 8 years) is filing for Ch7. We have joint kids that go between our households, so I am trying to keep informed about his case to the extent that whatever happens will affect our kids. I've read through a lot of the archives here to get an idea of the whole filing process and thank the people here who have posted such helpful information.
Here are the facts about exH's BK:
Mortgage (contract for deed) with interest only payments of $1500 (balloon of $500K due at the end of 2012)
Owns two older cars w/out payments.
$2400 per month social security income (benefits his wife's kids receive from her dead husband) - both ex and wife are currently unemployed.
Listed other monthly expenses (household of 5 people) ie food, clothing, entertainment, phone, cable, cell phones etc. puts DMI at -2200
My question is does the trustee look at the DMI and decide what is reasonable for rent, living expenses etc. moving forward? The reason I am asking is, if his contract for deed is cancelled, perhaps he will try to keep renting (he rented the house while he was coming up with the downpayment for the contract for deed). But the rent will at least be $1500 per month (what he pays now on the contract), and perhaps they will go up because the owner will become liable again for property taxes (and back taxes exH has not paid).
Does the trustee get involved in approving what is reasonable for rent etc. moving forward after discharge? It doesn't sound wise for him to keep renting at a rate that is most of his monthly income. (He has not always been unemployed but in this job market, having been fired from his last job, and know this pending BK, he may have trouble finding a job anytime soon.) I know but his wife is quite emotionally attached to the house and I am hoping for his sake that he will not be allowed to move forward with a plan that will defeat the purpose of his Ch7.
Does the trustee limit his involvment to figuring out a fair discharge of the debt, or will he have some say over their future plan if/when he losses his mortgage?
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