Before filing chapter 7

[BrokeMike]

Do I need to be current on my mortgage before filing if I don't want to keep the house? Does it affect schedule J?

Thanks
Mike.

[DeadManCrawling]

Varies, but most districts do this:

You count the expenses from mortgage an utilities even if not current, and even if surrendering. The legal reason is that the "6-month lookback" is, by law, a "snapshot" of your history.

There ARE, though, some districts that view it otherwise. Those districts only allow you to use the federal accepted guidelines.

You need to find out what your district does, to find the correct answer. If you are in a district that will not allow you to claim the expenses on a property you are surrendering, you could be forced into a 13 or dismissed under the "totality" clause.

Not familiar with MI, but hopefully someone will answer.

Good luck,

-dmc

[BrokeMike]

Thanks a lot DMC.
I will check with a lawyer in about a week.

[HakunaMatata]

I stopped paying my mortgage in July, filed in September (Michigan -Eastern District), intend to surrender my house, and my mortgage expenses were included. My expenses were slightly less than federal standards (I'm not sure how cases are handled if expenses greatly exceed these).

[BrokeMike]

I stopped paying my mortgage in July, filed in September (Michigan -Eastern District), intend to surrender my house, and my mortgage expenses were included. My expenses were slightly less than federal standards (I'm not sure how cases are handled if expenses greatly exceed these).

Thanks HakunaMatata. I am in Michigan -Eastern District also.