Our budget is in the negative

[LostinTX2]

By using averages against our last 6 months, our budget falls into the negative. We're filing Chapter 7 and want to keep our house. Frankly, we can't rent for less than our house payment so it doesn't make sense for us to lose the house.

So, if we show a negative budget, will the house payment be ruled a hardship?

Our income is also based heavily on the business which we are bankrupting as well.

[JRScott]

Have you tried using the actual numbers rather than averages, or is that worse even?

I would try to keep your negative as little as possible, even if you fudge some areas. Within a hundred dollars either way of 0 and you might be okay. If you're like 500 negative then yes the judge might rule it a hardship, however you might still could stay in your home. All the hardship would do is prevent reaffirmation, but many states allow a 'walk through' where so long as timely payments are made then you can keep your house. In fact some mortgage lenders do not even over reaffirmation agreements. So try not to panic.