need suggestions over the secured debt limit

[mmenz22779]

I may not qualify for a 7 due to income, so if i have to do a 13 then here is my question.

I have 3 homes and one car loan.

home 1=main home 1st 290k HELOC 250

second home = (investment) 125k 1st 125k HELOC

Condo = investment hme 231k

Car loan = 21k

total secured debt = 1042954

total allowed = 1010000

diff over about 30k secured debt.

I dont want to keep the investment homes but will keep my car loan and main home.

Need answers please?

#1) Do i let the Condo or investment house go into forclosure then it wont be considered secured debt then file my 13?
#2) When the condo or invetment home goes into forclosure and sales at auction I could be 1099 for about 130k. At this point i can declare bankrupcy and file insolvancy on my taxes to wipe out the taxes on that correct?
#3) How soon do i need to file my taxes before i do my 13?

#4) Can the houses forclose and then I can file BK and claim insolvancy at that time as long as i do it before the end of the 2009 tax year as the houses will be auctioned next year?
#5) Can i keep the rent the tenents paid me up until the time the forclosure finishes then wait for anouther 5-6 months for the means test as long as it is before the end of the year?

thanks all

[rrockinggramma]

1. yes, the condo and investment will become unsecured debt if you let them go in your bk.
2. You would not owe taxes on debt discharged in a bankruptcy filing. Remember the key word here is discharged.
3. you can file your taxes while in the chapter 13. the lender would not be able to submit a 1099 c to the IRS because of your BK so no need to wait to file
4. Filing timeline is personal choice. You can always file and surrender the homes in your bk filing. You don't have to wait for the foreclosure process to happen first. In fact, if you file BK, on your credit report it would indicate IIB (included in BK) and once you file, no additonal reporting on those accounts can occur, thus avoiding the notation of foreclosure
5. You need to let your tenants know that you are letting the properties go and to be looking for something else. You could collect the rents up until filing but they would be counted as income in your filing. To not have the rents included, you need to not collect them for 6 months prior to filing. So you might want to let your tenants cancel their leases and move out and then wait the 6 months with no rent income and then file.

[mmenz22779]

In ref to question #1,

I meant to say if the properites SOLD, then the condo is not unsecured debt as it is gone and the HELOC on my 2nd home is the only thing that becomes Unsecured debt. The 1st goes away and i would most likely recive a 1099 for 2009.

Sorry for the misunderstandin in my post.