My spouse job is relocating to another states. Currently in chapter 13, we are selling home and we will lose about 40000 in income from my job. My question is we will need the sell of home to rent a home in this high cost living area will the trustee apply the equity towards my plan. And will the pay be adjusted for loss of income?
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A portion of your equity should be Exempt. Homestead Exemptions are based on what State you live in. When you sell your house on the one end, you should be able to keep your Homestead Exemption portion, but the remainder of the proceeds would probably have to go to you Plan.
Be sure to contact the Trustee ASAP. You have to get permission from the Trustee to sell your house, and you must notify the Court you are moving to another District's jurisdiction.
You should be able to ammend your plan payments for the new income level and costs of living differences. I know it sounds hard, but you might want to wait a couple of months to ammend the plan. That way, you'll have a good handle on your living expenses in the new area. Utilities, costs of groceries, look at clothing prices, find out how much doctors charge for office visits, and such.
One thing I see as a potential problem is the cash you'd have on hand as a result of your Homestead Exemption. You should call the attny who filed your BK and ask about what might happen with that money.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...
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