Moving to another state and filing a chapter 7.

[chargers777]

So, my 13 is active in the state I currently live in. I am about a year into the 13, but a recent job change and health issue is going to make me not eligible to complete the 13 because of the lack of income. I probably should have been in a 7 in the beginning, but my income was too high at the time. I don't have any assets other than a house with about 300k equity.

At this point, I am considering another job, in another state. A job that I can do without stress on my body. The salary is about 50k less, but it covers my expenses and I would prefer to live in this state, as the cost of living is much lower.

So, I know that am going to qualify for a 7 soon, as my income will drop dramatically.

My question: Can I move to my other state now or do I need to wait and file in the state I currently live in?

I appreciate any feedback on this!

[justbroke]

I moved between districts, within the same State though, when in an active Chapter 13. Once your Chapter 13 is confirmed you can live anywhere. You just need to make sure you keep up on your payments and should you ever be required to attend a hearing, make sure you can attend. I had no issues and travelled over 150 miles a couple of times (I was Pro Se). I only had to notify the Trustee and the clerk of the court of the address change.

Best of luck to you.

HERE'S A STRATEGY WARNING: beware of that $300K in equity. Moving will have repercussions on any potential exemptions! There's the 180-day and 2-year test when it comes to those things, which could be further complicated by the State law as well. For example, Florida has a 730-day exemption requirement in order to use the unlimited homestead exemption. Another example is that some States don't allow a debtor to use their exemptions unless they are domiciled in that State.

If you are going to simply convert, you don't need worry about the equity, or possibly the State exemption scheme, unless you had a lot of it when you started your Chapter 13. However, if you dismiss and refile... you'll need to protect the equity and your exemptions will most likely get real complicated.

[chargers777]

I moved between districts, within the same State though, when in an active Chapter 13. Once your Chapter 13 is confirmed you can live anywhere. You just need to make sure you keep up on your payments and should you ever be required to attend a hearing, make sure you can attend. I had no issues and travelled over 150 miles a couple of times (I was Pro Se). I only had to notify the Trustee and the clerk of the court of the address change.

Best of luck to you.

HERE'S A STRATEGY WARNING: beware of that $300K in equity. Moving will have repercussions on any potential exemptions! There's the 180-day and 2-year test when it comes to those things, which could be further complicated by the State law as well. For example, Florida has a 730-day exemption requirement in order to use the unlimited homestead exemption. Another example is that some States don't allow a debtor to use their exemptions unless they are domiciled in that State.

If you are going to simply convert, you don't need worry about the equity, or possibly the State exemption scheme, unless you had a lot of it when you started your Chapter 13. However, if you dismiss and refile... you'll need to protect the equity and your exemptions will most likely get real complicated.

Thanks for the feedback.

I am thinking of just letting it all go. Do a settlement with the CC's and IRS.

OR

Just stay put until I get a Chapter 7 discharge, which should be settled sometime this year.

[justbroke]

Be wary of settlements with creditors. First, they are not guaranteed. Second, any amount that they forgive will be taxable income. The Chapter 7 discharge is the better route, financially.

[chargers777]

Be wary of settlements with creditors. First, they are not guaranteed. Second, any amount that they forgive will be taxable income. The Chapter 7 discharge is the better route, financially.

Appreciate the feedback.

I guess I will just have to delay my goals for awhile and do the 7. It does make sense, financially. Cleans up a lot of debt, that is for sure.