Can U move out of state while in ch13 plan?

[contemplate]

Hi all. I am just wondering, if we filed 13 would we be trapped in our state & district for 5 years. Or would we be allowed to move out of state? If so, how would this work? Would we pay payments to our old trustee or transfer a plan through a new lawyer & trustee in the new state? TIA. D@m# this debt! (How we have wished to turn back the clock.) Thanks so much in advance!

[optimistic1]

[lrprn]

I am just wondering, if we filed 13 would we be trapped in our state & district for 5 years. Or would we be allowed to move out of state? If so, how would this work?

Yes, you can move before or after filing Ch 13.

If you move before filing, you can file in your new state as long as you've met the requirements for residency - usually living in the state for 91 days. However, you would have to use your original state's bankruptcy exemptions (or the federal exemptions if your original state allows that) - that's the law. You can't use your new state's exemptions until you've lived there for two years.

If you move after filing but before your 341 meeting, as Optimistic said, you have to return to your first state's local court for the 341 meeting. Then you return to your new state. You only have to return to your old state if you are required to appear in court because of objections that can't be resolved by your trustee and lawyer (and 95% of those are resolved before your confirmation meeting). You typically don't have to appear in person for your confirmation meeting.

If you move after your 341 meeting, then you reside in your new state but are still represented by the bk lawyer in your original state for the length of your plan.

Would we pay payments to our old trustee or transfer a plan through a new lawyer & trustee in the new state?

You pay your payments to the Ch 13 trustee in the state you file your 13 in.

[rjl0206]

if you make a little more money or get rid of your mortgage and rent out in another state, will bk13 payments change in accordance with a new means test?..

ray

[lrprn]

if you make a little more money or get rid of your mortgage and rent out in another state, will bk13 payments change in accordance with a new means test?

It depends on how much "a little more money" actually is. Most trustees will consider taking a second look into your financial situation if your income increases more than 10% at once.

If you file first, then decide to surrender your house with its mortgage afterwards, whether it will change your Ch 13 payment depends on how your income vs expenses after surrendering the house compare to your filing income vs expenses. If there's a significant increase in your disposable income after surrendering the house, then yes, it's possible (not 100% certain) that your trustee *might* approach the court to request an increase in your payment.

There's no way to tell in advance what's going to happen in either of these circumstances. Too much depends on factors that are unknown until you actually are ready to make the decisions one way or the other.

Your lawyer should be a tremendous help sorting these questions out with you. Have you contacted him/her about your questions yet?

[rjl0206]

Thank you.

Ray