Rent
Does the trustee require proof that you pay rent or do they take what you put into your budget as gospel as long as its the typical price for rent in that area? Might they look into your bank account to find records of rent? What to you guys think?
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It really depends on the trustee and whether your claims of rent make sense. If you are claiming a $2000 rent payment per month they will want an explanation. If your rental payment amount alone will determine whether you are forced into a CH13 or not they may check it out. Our trustee did not check. In fact , we are supposed to be living with my in-laws and paying rent. We have not always been able to pay due to that fact that we were about $400 in the red each month. Keep receipts though. Trustees do random audits for an unlucky few and comb through everything. -
If its normal amount for the area, probably not an issue. But it also depends on who you pay it too, on your Schedule of Executory Contracts, you list you apartment lease. If its to a family member or something, that will raise questions.
Remember, that ultimately anything you put in your bk paperwork you need to be prepared to back it up if necessary. So if you put down that you pay $800 in rent, and the trustee subpoenas your bank statements and it only shows $400, that is problematic.
if you share rent with someone, then you only list the portion of rent that you pay.Comment
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Our rent is somewhat high for our area according to our attorney but it is what it is. The Trustee just asked for a copy of our current lease to prove what we were paying. If you have documentation to prove you pay what you are claiming in expenses, you have nothing to worry about.Comment
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Thanks for the Info!!!Comment
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