QUESTION
Can I rent my house if I filed chapter 13 or 7 in 2013?
Asked on Apr 02nd, 2017 on Bankruptcy - Ohio
More details to this question:
My son and his youngest daughter which is 7 years old live in my house, he only can work one place and has very low income because of disability also my brother is living there he makes their meals. I am engaged I would like to live with my husband-to-be so was going to try to get my son on Section 8 and get my house also on Section 8 so they could live there because they cannot afford an apartment so this is the only way I could think it might work to keep them in shelter. I pay all expenses and don't know how longer I can do so. Everything is going up and my income has at a talk it will not go up anymore.
4 ANSWERS
Probably, but the only way to be sure is to look at Chapter 7 or 13 bankruptcy file.
Answered on Jun 26th, 2017 at 6:27 PM
If you are renting out your house when you file Chapter 13, your ability to claim a homestead to protect any equity in it will be limited. However, I do not see any problem with you doing this if there is no equity in the property or if you do so after filing Chapter 7 or 13. Just be sure that you disclose the rental income in your budget to the court.
Answered on Jun 26th, 2017 at 6:26 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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While your question is not entirely clear, I think you are saying you are in one or another kind of bankruptcy, and you are concerned about the consequences of renting out your house to relatives. If you do not have a lawyer for your B R you really should retain one: it's almost always worth the cost. If you are Ina chapter 13 that still has years to go, ALL of your disposable income must go into the Plan. If the cost of maintaining the house is about the same as the rent you receive, then you would not have additional net income from the rental, so there would be nothing to report to the trustee. If you are in a chapter 7, and your equity in the real estate is entirely exempt, then after the charge you could probably do the deal without any consequences. Again, consult an experienced BR lawyer in your locality.
Answered on Jun 26th, 2017 at 7:48 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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If you filed a chapter 7 in 2013, renting the house today has no impact whatsoever on the bankruptcy. If you filed a Chapter 13 in 2013, the increased income from the rental, along with your new expenses can require a change in your plan payments. If you marry your fiance, it may also affect your 13.
Answered on Jun 26th, 2017 at 7:47 AM