Oh no, my rental property might hurt me on means?!

[Tom_Mi]

My atty meeting is this morning. I'll ask her what she thinks of this.

I have 2 apts I want to surrender. They're +180 because of huge maint costs the last year. I've had a few months where they've returned a some money, but it hasn't been enough to pay the mortgages.

I have a third apt with CURRENT loans. This apt's rents have been used by my management company to prop up the bad ones above.

Are the piddly rents on the unpaid mortgages going to kill me on means testing..even if I used them to pay other bills/debts etc?


....this is confusing since the atty told me a month ago that "your debt is business losses, so you'll qualify for ch7".


ugh.

[Help!]

Question... do you keep the accounting for the apartment income/expenses separate from your personal finances? I'm sure someone else is an expert at this, but it would seem to me that the money the business takes isn't your personal income. Your personal income on the means test, in my opinion, would only include the portion of that money that you pay yourself.

You probably already know this, but you can only include the housing expense (mortgage payment or rent) for the property that you live in on the means test.

[Tom_Mi]

Just met with the attorney.

I might slide under with the few grand I've made this year.

The apts are in my name and the management company makes the checks out to me, not an llc...so it's my income.