When do I start - Ch7? Income vs Stop payments

[mhman]

My income will be reduced up to 15% very soon. It put me in Chapter 7 median income criteria.

However, I have a rental property which I failed to sell when I moved out for a new job.

If I add the rental income, I won't be qualified for Ch7.

Should I stop receiving a rent and give the tenant a notice to move out in a timely manner?

Even though there is a rental income, there is about $700 negative cash flow every month.

I want to let this rental property with 1st and HELOC go through Ch7.

Should I include the rental income which will be removed couple of months later I filed BK?
Should I stop receving a rent for the next 6 months to be qualified for Ch7?
Should I stop paying mortgages or CC payments sometime soon? I don't know a good timing for this.

Any advices and suggestions would be highly appreciated.

[fooked]

I am in the same boat... was advised to stop collecting rent for a few months... I let my tenants know about what's going on, so if anything, it gives them time to pocket some money as well...

[mhman]

Thanks for sharing your case.

Did you stop paying the morgages, e.g., 1st and 2nd, at the same time?

Thanks in advance.

[fooked]

yes, starting this month... it killed my "ego" because I've never been late or missed anything in 20 years...

I was also advised to stop paying all CC's as well

[frogger]

As long as you're collecting rent, you need to keep paying whatever you can on the mortgages. If not, then you will probably fail the means test for a 7.

[fooked]

my purpose for not collecting the rent was due the advice my attorney gave me... including the rental income put me over the median... plus, I had charges on my card from last month for my daughter's surgery... so we're waiting 90 days for that...

60 more until I can file...

[mhman]

One more question, "fooked"

90 days is to clear the credit cards but ch7 requires 6-month income. Can you still file ch7 after stopping receiving a rental for 3-4 months? It would not pass ch7 income criteria???

I also never paid late entire my life. But due to several unexpected things happened, I should stop paying all CCs and mortgage payments for ch7.

I don't know how to handle all calls from creditors during the wating period for median income criteria.

There is a big emotional thing now. I never thought of BK before but it's a reality now.

Have a wonderful day.

[fooked]

yes, you can still file, according to my attorney... it was only on his advice that I stopped paying... he said the trustee will see it in a positive light that I informed my tenants of my circumstances and wasn't playing the game that a bunch of investors are doing, pertaining to collecting rent and not paying the mortgage...

the decision for me to even talk to anybody was tough... ego's a tough thing to overcome... I have all of the emotions that everybody else has had, you included... I just want it to be over with...

as far as the calls... every time i pick up there's nobody on the other end of the line... that's getting annoying... i'm just going to tell them that I've got financial hardship at the moment... my accounts receivables are over 60 days late now... and that's the honest truth...