Ch 7 Non consumer in Florida

[Freedom2us13]

Hello everyone. I am considering a nonconsumer ch 7 next year sometime. I was hoping for some feedback concerning my plan as it is the only way out of this constant stress. Please let me know what you think.

My husband and I live in Florida in Brevard county on the East coast.
Our primary residence is up for short sale - we owe $350K underwater about $150K
We have a car loan for $20K with the car's value at $17K
We really have no assets besides a 401K, IRAs and 529 plan for daughter.

We own 3 rental properties all underwater with loans totaling $280K

If we short sale the primary residence and reduce the loan on the house to just a deficiency, I believe we can file for a Ch 7 non consumer. It is my understanding that as of now, we would not qualify because the primary residence loan is greater than the investment property loans.

Am I correct? I can't seem to find info on this strategy.

Thank you in advance for your valuable input.

[SunshineGal]

Yes, you are correct. In order to qualify for a non-consumer your business debts have to be greater than all consumer, including the mortgage, cars, credit cards, etc.

[Freedom2us13]

Thank you SunshineGal. I am trying to short sale my primary residence in order to reduce the consumer debt to less than the non consumer debt. Right now, the mortgages on the rentals total $280K. Do you know if the non consumer debt takes the total of the mortgages into account -example: $280K or do I have to back out the value of the properties from that amount even if the properties have not been foreclosed on yet?

[SunshineGal]

Hi Freedom,

Hopefully one of the FL experts will chime in here (I am not one of them, lol) but I would think you would list the total amount of outstanding balance of the mortgages. Do a search for non-consumer and look for JustBroke's posts, you will find a ton of helpful information.

SG

[Freedom2us13]

Thank you, will do. BTW did you have any luck with a new attorney? I read about your saga with the assistant.

[SunshineGal]

Mine? I loved my paralegal and attorney, they're wonderful.

[Freedom2us13]

Sorry - I guess I've been reading waaaaayyyy too many posts and I confused yours with someone else.

Thanks again