20 Investment properties & Chapter 7

[nitz3699]

I am trying to get info for my father:

20+ Investment properties all are on the brink of foreclosure. He doesn't have enough income to pay all bills, large amount of credit card debt at extremely high interest. Cannot refinance anymore, already leveraged to the max.

Anyone go through this situation already?
When looking at income for Chapter 7, how does rental income work? he pays it all out and then some so would it be considered income?

Is there anyway to keep a select few properties? or just personal house?

Would bankruptcy eliminate any deficiencies on all properties in foreclosure? or does that only apply to personal residence?

[AngelinaCatHub]

Where are these properties. I sold a lot on eBay. You may be able to sell several for costs and maybe a bit more to pay off the couple. However, that is an asset. Beware. Don't attempt to change ownership they can go WAAAAY back on that. As far as his rental recievables, yes it is income, but then the expenses are an offset so his net gain would be counted but must be logged. Tell them as much in honesty and hide nothing. 'Hub

[fltoo]

64,000 dollar question. I am waiting on an answer to this also, waiting for all the dust to settle so we can get a firm answer on this from the banks.

[HHM]

Your father will probably not be allowed to keep any. Rental income is treated as income but the mortgage and necessary expenses are typically allowed. And yes, BK would eliminate any deficiency balance.

[nitz3699]

Where are these properties. I sold a lot on eBay. You may be able to sell several for costs and maybe a bit more to pay off the couple. However, that is an asset. Beware. Don't attempt to change ownership they can go WAAAAY back on that. As far as his rental recievables, yes it is income, but then the expenses are an offset so his net gain would be counted but must be logged. Tell them as much in honesty and hide nothing. 'Hub

Minneapolis, just curious how easy is it to sell properties on Ebay? I think many would have to be short-sales at this point so I am not sure how that works.

[nitz3699]

Another question, when i personally filed I quit paying my creditors and ended up with extra money every month. His situation would be the same EXCEPT he would have A LOT OF EXTRA CASH.

Any ideas how this would work? I always say stuff it in a mattress but not probably not the best idea either.

[nitz3699]

bump

[JRScott]

If he would have disposable income without the mortgages he would be a chapter 13

[Tbornetun]

Minneapolis, just curious how easy is it to sell properties on Ebay? I think many would have to be short-sales at this point so I am not sure how that works.

I am in Minnesota also. We had a client which discharged a few months back that had 6 different properties. All were allowed to foreclose and all were discharged in bankruptcy. If your father wanted to keep his own home, it may or may not be a problem depending upon if he has equity and if he is current on his payments.