what if rent is too high just moved in

[dovette7]

We are surrendering home in bankruptcy. Mortg was $2900.
Moved to rental which is $1750 starting Dec 2006.

Attorney says she anticipates an objection in rent and trustee will find $450 disposable income b/c my rent is higher than county avg.

I've cut everywhere I can, but can't cut the rent. What happens?
Does it matter than I went from $2900 to $1750 and by giving up the house, more would go to unsecureds?

[coma]

In my experience, the trustee objected us moving from a rental that was $1375 to one that was $1900 about two weeks prior to filing. We had to answer his objection, showing that our rent was going to increase from $1375 to $2500 upon renewal of the lease. Is there some way you can, if he objects, justify you having to pay that much?

[dovette7]

We moved over Christmas after looking for a few months. I couldn't find anything without a credit check to rent. We have 5 people in our house. There wasn't a lot to rent in those months compared to now.
I don't know how else to justify it.

[lrprn]

The reality of your situation is what it is. If asked, just tell the truth.

A suggestion that could help justify your rent amount....do some checking in your area now that there are more available possibilities to see what the average rents are in rental houses/condos/apartments that fit your family. If they are generally the same amount/month, that supports your position.

[SinkingFast]

We moved over Christmas after looking for a few months. I couldn't find anything without a credit check to rent. We have 5 people in our house. There wasn't a lot to rent in those months compared to now.
I don't know how else to justify it.

I think it's really dependent on the area you live in.

The average, smaller sized, 3 BR house here rents for $900-$1K/mo. Our allowable for housing and utilities for a family of 4 or more persons is $969/mo. Our current rent is $1200/mo plus all utilities.

Basically, we had Rental Laws and "sex" issues working in our favor. Local Rent Law only allows for 2 people to share a bedroom. With 2 girls, a son, and Mom, that meant, minimum, we HAD to rent a 4 BR place. So that immediately bumped the rent up to what we currently pay and higher.

I am not a "Rental Laws" guru. Hubby's Company had a Relocation Assistant helping us find a place to live. We really wanted less expensive rent. The Relo Asst kept directing us to 4 BR places. She's the one who told us about the Law. She's a licensed Realtor and that's why she could not help us rent a 3 BR house.

Maybe do a little research and see what your Local Rental Laws are. You might be covered, as we were, in what the Law will and will not allow you to rent.

And, as Lrprn said, tell the truth. You had no control over market availability at the time you moved.

[dovette7]

I am actually a realtor, but not of homes... I have access to the listings though. My brain is so overwhelmed that I didn't think to check. so thanks for the suggestion to check it out.
Here's what I found.

During the 3 months we were looking to rent, there were only 2 homes (4 bedroom) leased and the avg was over $450 more than I am paying.
Currantly there are 10 active listings. The average is $1763. I am paying $1750.
On Craigslist, the rentals avg $1607.

So the IRS standards are $1283 for my county.

I guess I just have to wait and see if they object to this.
If they do, then what do I do?

[SinkingFast]

I can't really advise you, Dovette. We filed Ch 7 and the "Rules" for Ch 13 are quite different.

We got our expenses like the higher rent, pet cost, and other things that I see Ch 13 Filers routinely being denied.

One thing you can do for prep is Document, Document, Document!!

Find out at the other places, does rent include the utilities or do you have to pay those separate. Substantiate your situation based on the local market. Print out all that info plus what you've just posted here and give copies to your attny. Get pictures of the Units and/or houses available.

If you can prove your claim, that gives your attny basis to argue your case.