Disposable Income

[confusedinfl]

I am a little confused about how they figure the disposable income. The mortgage payment was included in the statement of income and expenses along with other expenses relating to the house and on the filing my expenses were greater than my income. I am surrendering the home (there is no equity in it) so afer the bankruptcy I will not have those payments but obviously I have to live somewhere and will have to take on a rent payment and utilities, etc. So...I guess my question is whether the fact I am surrendering the home has a bearing on the disposable income calculation. Do they take all those expenses out and disregard the fact that you have to find somewhere else to live?

[SinkingFast]

It seems that Local Rules and Traditions dictate whether or not you'll be able to iinclude mortgage payments and costs for a house you intend to surrender.

http://www.wisconsin-bankruptcy-law.blogspot.com/

http://pacer.okeb.uscourts.gov/opini...%20property%22

In our case, attnys here would not annualize forward mortgage debt for a house we intended to surrender in BK. Only one out of a dozen or so attnys we Consulted with even considered this strategy. Evidently, in our Court, if you aren't gonna own it after you file BK, you cannot claim expenses for it in your BK Petition.

In the Wisconsin case cited above, the US Trustee allowed for mortgage payments and costs of a house surrendered in BK to be annualized forward.

In the Oklahoma case, the Judge did not allow for mortgage or car payments of assets surrendered in BK to be considered.

Seems it really depends on where you live, how the ruling will fall.