'Primarily consumer debt', definition?

[SamanthaJones]

My problem is several rental properties, all are now worth less than the mortgages, the rents do not cover the mortgages, which total over $500,000. CC are about $30,000. Are my debts primaarily consumer? If not, does the median income apply to my situation, and the means test if I am over the median?

[lrprn]

My problem is several rental properties, all are now worth less than the mortgages, the rents do not cover the mortgages, which total over $500,000. CC are about $30,000. Are my debts primaarily consumer? If not, does the median income apply to my situation, and the means test if I am over the median?

Samantha, I doubt that anyone here is going to be able to answer your question. Your situation with two rental properties complicates your case considerably. You need sound, experienced legal advice....have you made appointments with 3-4 bk lawyers in your area for your free initial consultations yet?

[SamanthaJones]

Yes, so far three lawyers.

But I only went asking to see if I can let one or the other rental foreclose. One told me I need CH13 BK. Next said the first was 'crazy', I need a CH7 BK. Third? He told me I made too much money 'last year', that I don't qualify at ALL for BK, that I need to 'make more moeny and reduce my debts'. Hmm. I am unemployed, and the rents don't even make the mortgage payments. For sure if I filed CH7 my income is way under median. And I don't want the rentals, so I'd give those up. My situation really should not be more complex than anyone with any other exemption issues.

[keepmine]

A Chapter 13 is a wage earner plan. If you have no income, you can't fund the plan.
Looks like a Chapter 7 is possible. You'll just need to wait and get your previous 6 month income below the median.
BTW, if you aren't making your mortgage payments you really have no say in if one or the other will foreclose. Eventually, they will foreclose.

[SamanthaJones]

My income doesn't exist.

I'm current on everything, but the bank account is sinking fast. Just goes to show how little some lawyers pay attention to details. CH13 with no job? Im glad to find sites like this so I can get an idea of REALITY! I don't want the rentals, so I asked about letting them go away. Turns out it's far better to file, for tax purposes, etc. if it comes down to that.