QUESTION

Consequences of renting while in bankruptcy

Asked on Nov 04th, 2019 on Bankruptcy - California
More details to this question:
What are the consequences if iam in bankruptcy and iam renting my back yard to get extra income
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1 ANSWER

Bankruptcy Attorney serving Burbank, CA
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Did you start renting your back yard after the bankruptcy case was filed?  If so, the consequences depend on which Chapter you filed (which you failed to disclose).  In a Chapter 13 case, the additional income would be property of the bankruptcy estate and you may need to increase your plan payment depending on the terms of your Plan and how the Trustees and Judges in your district handle those matters.   I you rented it out prior to filing the bankruptcy case, then of course you must include that income on all the relevant forms (including the Means Test and Schedule "I") and it will factor into your eligibility to file Chapter 7 or the amount of your plan payment in a Chapter 13.  
Answered on Nov 06th, 2019 at 3:30 PM

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