It was suggested to decrease my DMI, that I move and rent something that costs more

[lvmcse]

What do you guys think. It was advised that I rent something more expensive than I currently have to decrease my DMI. I'm not that off but I was just wondering if I did this, how long do I need to stay in this place to file?

Thanks guys and gals.

[joshuagraham]

It seems that 6 months is considered "long enough". This begs the question as to whether there is some limit on what a reasonable rent is for the expenses.

[ValleYum]

If you keep increasing your expenses in order to insure low enough DMI for a Chapter 7 filing, you will not have succeeded at lowering your debts once your bankruptcy is over. You will be bound by a lease to the newer more expensive place and who wants to move again once you receive a discharge?

Personally, I think increasing your rent is risky *and* not very easily explained if point blank asked by a Trustee why you increased your living expenses when you are broke enough to be filing bankruptcy. I'd finance a used car before I did that - reliable transportation is very important.

Just my opinon(s).

[keepmine]

What about insurance? Do you have both long an short term disability polices? Do you and you spouse have adequate life insurance? How about lowering the deductible on your auto insurance?

[HHM]

Keep in mind...if you "rent" then you are bound to the IRS limits for housing expense. The strategy of renting for "more" than your current mortgage only works if your mortgage (and other included housing expenses) is less than the IRS standard.

As with others, you can (and only want to) tinker with the expenses on the margins. You do not want to create an artificially expensive lifestyle for the sake of filing BK. If you are a 13, you are a 13; get over it. You owe money, you can't pay it back, and the system wants you to pay "something" back if you can afford to do it. You have to compare chapter 13 to the "actual" alternatives. If chapter 7 is not on the table because you make too much money, then it is NOT a real alternative and you need to stop thinking about it. The choice becomes chapter 13, or....what else? (