Are investment property mortgage allowed as allowable expense in Chapter 13

[GGupta]

I have an investment property where I loose about 1000$ a month (Taking into account Rental income, mortgage, taxes etc)..

When I calculate the disposable income for my rental, can I deduct 1000 dollars from my Job's income)..
Can I do the same in Chapter 7. If I do that, I will have negative disposable income. So does that mean I will be allowed to file chapter 7.
My current income is more than the median income.. but I am net negative when I include Inv property expenses along with other normal (IRS outlined) expenses.
So, can I include Inv property as valid income loss (or expense) for Chapter 13.. If I include my annual bonus, I could show that I am a bit positive (200 bucks a month or so).
I have about 50K credit card debt and a primary residence mortgage as well

[justbroke]

Yes, it's allowed, as it is treated as a business. As a matter of fact, form B22A or B22C (the Chapter 7 and Chapter 13 Means Test), includes an area for revenue and expenses from real estate rentals! Problem is, this number cannot be negative!

Be careful in a Chapter 13. Many Trustees will require you to pay the appraised value of the home, to the unsecured creditors. This will usually put you in a 100% Plan.

[GGupta]

The appraised value for the investment property will probably be Zero or less then few thousand after you take 5% agent commision etc. but not a whole lot less. Would the Trusty still expect that?

If I cannot put a negative number in the Rental property section, it is no good for me (becoz a positive income only puts me to the plus section).
or I am missing something?

[HHM]

This is actually a tricky situation.

The expense of the mortgage of the investment property is allowed insofar as it is a secured debt, but if the property is negative cash flow, the trustee is on fairly solid ground to disallow your use of other income sources to support the property. In a chapter 13, the investment property must pay for itself.

[GGupta]

So my only choice is to foreclose on investment property to pay for my unsecured debt? If I dont file Chapter 13 (or 7), I can not keep up with unsecured debt as well as secured..
If I try to sell the investment property, how do I pay while I put it on the market?
Is it disallowed by law or is left to Trusty to make the decision?

Also, if I file for Chapter 13 and it is dismissed by Trusty, does it still go on my records? Can I file again later if I am unable to sell Inv property or come with more money?