Means Test And Surrendering Property ?

[inseriousdebt]

We are trying to convert to a 7 and I am wondering from anyone out there whom has done this...are you able to include your mortgage payments on the means test like normal even if you are going to surrender the house? Technically we have two mortgages, one of which is going to go up in a couple months that we are hoping get included to help us out in converting. Anyone dealt with this?

[nc73]

We are trying to convert to a 7 and I am wondering from anyone out there whom has done this...are you able to include your mortgage payments on the means test like normal even if you are going to surrender the house? Technically we have two mortgages, one of which is going to go up in a couple months that we are hoping get included to help us out in converting. Anyone dealt with this?

I've heard some have been successful and some have not. I'll see what my lawyer says monday since I am in the same boat.

[inseriousdebt]

THank you!

I would love to hear back about this...we are anticipating a statement about our mortgage here in the next couple of weeks. Can't wait.....ugh..

[SinkingFast]

Shortly after the New Law went into effect, this issue was addressed. There was a Decision allowing for payments for Secured Debt to be included on the Means Test even tho the Debtor/Filer was surrendering the asset.

The Means Test is forward looking. So Debtors were allowed to deduct payments they were contractually liable for over the course of the next 60 months. If you're supposed to continue to pay on the mortgage for 5+ years beyond your filing date, you should be able to include those payments.

But as NC73 noted, different Courts do different things. Best to Consult with attnys in your area to know how this issue will be handled where you'll file.

[inseriousdebt]

Thank you so much for the response. I assumed that this is what would happen, but I guess we will find out. I will update this thread when we find out the answer from our attorney. It only makes sense that it's included if it is a current payment/issue.