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Hi JACustomer,For the Means Test, you are allowed to deduct from your gross income the monthly payments you make for secured debts - including the mortgage on your rental property. If after deducting all your allowable expenses - including your secured debts - there is less than $117 per month left over, you can then file a Chapter 7. If the amount left over is more than $117, but less then $195, you may be able to file a Chapter 7 (there is additional information required for this).
If you are able to pass the Means Test, you would be able to file a Chapter 7, have your unsecured debts discharged, and you would be able to keep your primary residence in Nevada (because it has less then $550,000 equity).I think this is what you wanted to know. If not, please let me know.Thank you!
All mortgages and HELOC's are secured debts. Car loans are also secured debts.
The HOA dues and property taxes on the rental property can be deducted from your rental income. However, if the result is less than zero, you cannot enter a loss.
Thank you for your help. As I originally requested, please provide the Nevada laws or statues pertaining to filing a BK using the premise (rental scenario) that we have discussed. I would like to be able to review this exception to not qualifying under the regular means test, and still qualifying using the rental property scenario. Thank you again for your quick reply.
The only statutes Nevada has that relate to Bankruptcy are the exemptions, which are here:
The Bankruptcy Means Test is here:
The deduction for secured loan payments is on Page 7.
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