didn't state intention on home, atty said not necessary?

[ohwell]

ok, I have been digging, and I am now nervous.

We have been declared preliminary no asset(had 341 a week ago, checked pacer today for status).

the situation is, we are surrendering our home(I have already received the NOD), and the atty did include it in our means test to get into a chapter 7.

since we aren't current on the mortgage, and we are renting(used the rent for the schedules as far as expenses and the utilities and all to go along with our new living situation, we are negative on the means due to the mortgage, and we do not have any disposable on the expenses schedule J), and we are over the median, is this a red flag for the US trustee to dismiss or try to convert?

I guess I shouldn't second guess things, but I am nervous.

[nc73]

ok, I have been digging, and I am now nervous.

We have been declared preliminary no asset(had 341 a week ago, checked pacer today for status).

the situation is, we are surrendering our home(I have already received the NOD), and the atty did include it in our means test to get into a chapter 7.

since we aren't current on the mortgage, and we are renting(used the rent for the schedules as far as expenses and the utilities and all to go along with our new living situation, we are negative on the means due to the mortgage, and we do not have any disposable on the expenses schedule J), and we are over the median, is this a red flag for the US trustee to dismiss or try to convert?

I guess I shouldn't second guess things, but I am nervous.

If the expense was there within the 6 months it should be allowed. I have two houses and my lawyer said it would be ok to list both even if i give up just one.

[Yankeegirl]

It depends upon the district you live in. We have a similar situation - moved from Pa. to Texas. Rented a house in Tx while trying to sell our house in Pa. The house wasn't selling (still not sold) and we ended up filing chapter 7. We included the mortgage on the means test and the rent the schedule.

The trustee did not have a problem with it but the UST did. There are a few cases throughout the country where the courts have ruled that this is allowed. However, unless you live in the district where the ruling was made, your current district can make their own determination. Our case is currently before a judge to get a ruling in our district.

The other problem is that even if you are allowed to deduct the mortgage on the means test, the UST can still file a motion to dismiss for abuse under the "totality of circumstances". So, for us, it's still not over!

[nc73]

It depends upon the district you live in. We have a similar situation - moved from Pa. to Texas. Rented a house in Tx while trying to sell our house in Pa. The house wasn't selling (still not sold) and we ended up filing chapter 7. We included the mortgage on the means test and the rent the schedule.

The trustee did not have a problem with it but the UST did. There are a few cases throughout the country where the courts have ruled that this is allowed. However, unless you live in the district where the ruling was made, your current district can make their own determination. Our case is currently before a judge to get a ruling in our district.

The other problem is that even if you are allowed to deduct the mortgage on the means test, the UST can still file a motion to dismiss for abuse under the "totality of circumstances". So, for us, it's still not over!

Yeah walking away from it all just sounds better and better...I've got two homes so it's going to be tough.