Have to keep mortgage to pass means test

[jenopher]

Hi,
New to the forum and preparing to file in a few months. Spoke with an attorney. We are about 10K over the means test for California. Our mortgage however gets us to pass easily. We would like to let the house go too as its quite upside down in todays market, but atty says we wont qualify for Ch. 7 without it. So, how bad is it to foreclose a month or two after BK? Anyone else have a smilar issue? My FIL is a property manager, so getting into a rental won't be a problem as far as credit score goes.

Thanks,
Jen

[lrprn]

Currently the bankruptcy districts are split on whether you can count expenses for an asset you intend to surrender after you file.

If you haven't hired this lawyer yet, set up free or low-cost initial consultations with 2-3 more experienced bankruptcy lawyers in your area. This is too important and the case law decisions about this issue are too new to take the word of just one lawyer.

Hope you are able to count your mortgage and still file Ch 7. Keep us posted what you find out and good luck!

[Cali]

We were told that we can count our car even though we are letting it go. I am also in CA.