I'm not sure where to put this -- thinking of giving up the house - need some help!

[goblue]

Try to make long story short. We are 2-3 months behind on our mortgage which is a good $30K over the current value of our house. We were planning on doing a Chapter 7 and keeping the house, but honestly I'm not so sure it's worth it. If I don't plan to keep the house, we will likely file in December -- if not, March so we can catch up on mortgage.

So - my questions. When I fill out the means test, do I include my current mortgage to see if presumption of abuse arises? What about in Section 5C -- I don't think I can include my mortgage b/c we're not planning to pay it going foward, right?

Also, if I find a house I can rent before we file/foreclose - how is that figured into the means test/Schedule J? It's a different county with (unfortunately) a lower allowance for mortgage/rent. Do I use the county that I'm residing in at the time OR the county the house is located?

Is it better to wait until after filing to find a rental property? or after discharge? Is it difficult to find a property willing to accept someone with bad credit/BK/foreclosure?

Can I still file Chapter 7 if I am giving up my home and my mortgage payment? I'm soooo confused!!!

Thanks.

[UpsideDownMI]

So - my questions. When I fill out the means test, do I include my current mortgage to see if presumption of abuse arises? What about in Section 5C -- I don't think I can include my mortgage b/c we're not planning to pay it going foward, right?

If you are not current on your mortgage payment, you should use the amount listed in the IRS guidelines for your county and family size.

It's a different county with (unfortunately) a lower allowance for mortgage/rent. Do I use the county that I'm residing in at the time OR the county the house is located?

If the county you are moving to has a lower allowance, I would wait until after you have filed before moving. Actually, you should try to live "rent free" for as long as you can before moving.

Can I still file Chapter 7 if I am giving up my home and my mortgage payment? I'm soooo confused!!!

You can still file chapter 7 if you are under the median income or you can pass the means test.