Hello all,
*
I am considering filing bankruptcy and am currently researching which chapter will be best for me (if any).
*
I own several properties, all of which are underwater with the exception of my primary residence (about $15k in equity), which I intend on keeping. *Most of the properties also have HELOCs on them, all of which are unsecured because the values of the properties are lower than the balances of the first mortgages. *I have finally gotten to the point where I feel that I need to cut my losses and get out of the hole I have dug for myself by trying to hold on to these properties, none of which has positive cash flow.
*
Most of my debt consists of these mortgages ($2 million in 1st mortgages, another $400k in helocs for the rentals, plus a $300k 1st mortgage for my primary residence), and another $18k in credit card debt.
*
After doing some research on this board, I started to get excited at the prospect of filing a non-consumer Chapter 7…until I read that the rental properties would have to have been purchased as investments (non owner-occupied) in order for those mortgages to be classified as non-consumer debt. *Alas, most of them were not, which would preclude me from filing a non-consumer Chapter 7…
*
My salary is over my state’s median income by a few thousand dollars per month, and my debt limits currently exceed the Chapter 13 requirements. *Would I be able to include the expenses of one or two of the rentals in the means test, if it would allow me to pass?
*
Thanks for any and all advice or suggestions! *If anyone from California has been in this situation and can share their experiences, please do
*
I am considering filing bankruptcy and am currently researching which chapter will be best for me (if any).
*
I own several properties, all of which are underwater with the exception of my primary residence (about $15k in equity), which I intend on keeping. *Most of the properties also have HELOCs on them, all of which are unsecured because the values of the properties are lower than the balances of the first mortgages. *I have finally gotten to the point where I feel that I need to cut my losses and get out of the hole I have dug for myself by trying to hold on to these properties, none of which has positive cash flow.
*
Most of my debt consists of these mortgages ($2 million in 1st mortgages, another $400k in helocs for the rentals, plus a $300k 1st mortgage for my primary residence), and another $18k in credit card debt.
*
After doing some research on this board, I started to get excited at the prospect of filing a non-consumer Chapter 7…until I read that the rental properties would have to have been purchased as investments (non owner-occupied) in order for those mortgages to be classified as non-consumer debt. *Alas, most of them were not, which would preclude me from filing a non-consumer Chapter 7…
*
My salary is over my state’s median income by a few thousand dollars per month, and my debt limits currently exceed the Chapter 13 requirements. *Would I be able to include the expenses of one or two of the rentals in the means test, if it would allow me to pass?
*
Thanks for any and all advice or suggestions! *If anyone from California has been in this situation and can share their experiences, please do
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