How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask socrateaser Your Own Question
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 38802
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
Type Your Bankruptcy Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

I have a primary residence and 3 rentals. I wish to keep the

Customer Question

I have a primary residence and 3 rentals. I wish to keep the primary and let the rentals go to foreclosure. I have had a drop in income as of 4/09. What can I do? I have just started not paying my 3 mortgages on my rentals(since April), and I'm current on my primary.
Income gross: $10,240/mo Income net(after taxes): $5,850
Primary residence: 1st loan balance $568,000, 2nd loan $171,000
Rental A: 1st loan $407,000 2nd loan $99,000
Rental B: 1st loan $429,000 2nd loan $93,000
Rental C: 1st loan $346,000 2nd loan $59,000
1. Does the definition of secured and unsecured debt apply to all 4 properties for chap 13? Or just the ones you wish to get rid of? Do I qualify based on this?
2. I have been told my income is too much for Chap 7. But I can qualify with the means test. A lawyer told me I need to reduce my income and maybe get a car note (I own my car). Should I?
3. Advised not to short sell, b/c tax liens would disqualify me for chap 7. true?
4. What if I can't do either?
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 8 years ago.

1. You can strip all of your junior loans, if the value of the collateral does not exceed the balance on the first.


2. I can't tell you what you "should" do. Only your lawyer can provide legal advice. However, I think last-minute gamesmanship draws the attention of the bankruptcy trustee, who will try to avoid the modification or have the entire case dismissed.


3. Tax on "cancellation of debt" income would be nondischargable for three years. Doesn't seem like a great option to me.


4. You could lose your job. Then you would qualify. Not being sarcastic here. You asked for another option.


Hope this helps.


Terms and Conditions: By your continuing in this conversation with me, or by your clicking “Accept”, you are expressly agreeing to all of the following: (1) our communication is for entertainment purposes only; (2) you are not consulting me in my professional capacity as an attorney; (3) you do not seek to establish an attorney-client relationship with me, nor do I with you; (4) you will not rely on anything I say and you will obtain appropriate legal counsel via a traditional/office consultation with an attorney licensed to practice in the jurisdiction where your legal issue arises (and you may not use our communication to avoid taxpayer penalties imposed by the U.S. Dept. of Treasury); (5) by communicating with me in this public forum you are irrevocably waiving any right to privacy, confidentiality and attorney-client privilege concerning the matters discussed. You further separately declare that any payment made by you is not consideration for this contract, nor offered for any services rendered by me on your behalf, but rather is made in genuine admiration and respect for my desire to help others. If you do not agree with these terms and conditions, then you must advise me immediately.