I am presently in C13 and pay a mortgage. I am moving out of state and will be renting a new residence there. Can I convert my C13 to C7 since I will have in essence 2 house payments and then I can surrender my house and discharge all my debts?
State/Country relating to question: Georgia
If you are surrendering your house you are moving from, then you would not be able to include that payment in your schedule J and so unless your new payment by itself makes you eligible for 13, you would not be able to convert. There are also other factors that should be considered in the question of whether to convert, which your attorney should be able to help you with, such as whether you have any non-exempt assets you might lose in the event the Chapter 7 Trustee decides to administer them, etc.
Well, if I am picking up a second rental payment because I am moving for a new job, that will change my whole payback capability under my C13 (I'm halfway through the plan). I basically would not be able to afford both house payments and the C13 payment. What would my options be then if I can't make the payment under the C13 plan?
Are you going to keep your house you're moving from? Are other family members continuing to live there?
No one is going to live there. But I won't be able to sell it because I'm so much underwater on it. Plus it will take so long that I won't be able to keep up the payments on it while it is trying to sell. So for some period of time, I would have to pay both places unless I just let it foreclose. Which is why I wondered if I couldn't then use it as a situation to switch to Ch 7?
Whether you convert to a 7 or not, you can surrender the house (in the 13 or a 7) and cease making mortgage payments immediately. Therefore, you could not honestly keep the original mortgage payment on your expense schedule. The question of whether you qualify to convert to a 7 would have to answered without reference to a payment on the house you're abandoning. You can't take advantage of the situation by basically pretending that old house payment is going to be an ongoing expense for you.
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