Can you surrender your house in a Chapter 13 after its been confirmed?

[CLEAR4579]

My lawyer is in the process of reverting our Chapter 13 to a 7 but in the meantime our mortgage company has requested our relief of stay be lifted due to past due mortgage payments. My husband and I do not want to keep our condo since it isn't worth anything can you choose to surrender it and rent something that is financially a little less for us? Our lawyer isn't responding rrrrrr

Any advice would be great

[HHM]

Yes, you always have the option to surrender property in a BK

[CLEAR4579]

I want to surrender my mortgage and rent something about $200 cheaper and much more room for our newborn son but my attorney seems to be giving me a problem since he is in the process of reverting it to a 7 and wants us to wait until after but I don't see why I should waste all the money now when I could be using for something else?????

So I should have no problem letting go of our real estate and renting something 200 cheaper?

[lrprn]

So I should have no problem letting go of our real estate and renting something 200 cheaper?

If you are close to the median income for your state or close to showing disposable income, dropping your mortgage payment even $200 may make it much harder (or even impossible) to convert your case to Ch 7.

Did your lawyer explain why he wanted you to wait?

[CLEAR4579]

He wanted us to wait so the 7 would go through. But I honestly don't mind staying in the 13 I am not looking to cheat my debts. So I just wanted to make sure we can still surrender our condo and to make sure it is our choice so I can tell him to forget the 7 and we can stay in the 13?

[CLEAR4579]

And if we stay in the 13 can I get rid of my house and rent something that is $200 cheaper without getting in trouble with the trustee?

[car67]

My understanding is that your better to have a house payment versus rent in Chapt 13.
If you move to lower costs on the mortgage by going to rent then your disposeable cash increases........ For $200 a month your going to lose the interest deduction on your taxes and your bankruptcy will go up. Renting cost more over the year with the loss of tax deduction.