If surrendering 4 investment properties, can payments be removed from DMI?

[cubanito72]

If I have 1 primary home and 4 investment properties, can I deduct the payments for the investment properties so that my dmi is low enough to qualify for chapter 7? All of the homes are vacant so there is no rental income. I am surrendering my primary too. I also have 3 credit cards so it's not all NON-Consumer debts.

[HHM]

Nope, not going to happen.

Note, the non-consumer vs consumer does not need to be ALL non consumer (note, your primary home mortgage counts as consumer debt). The total of your non-consumer debt must exceed the total of your consumer debt.

But if you have 4 investments properties, not rented, the US trustee will step in and object if you try to claim the mortgage payments for the means test (especially if you are surrendering and especially if the homes are presently facing foreclosure.)

[chrisdfw]

Nope, not going to happen.

Not, the non-consumer vs consumer does not need to be ALL non consumer (note, your primary home mortgage counts as consumer debt). The total of your non-consumer debt must exceed the total of your consumer debt.

But if you have 4 investments properties, not rented, the US trustee will step in and object if you try to claim the mortgage payments for the means test (especially if you are surrendering and especially if the homes are presently facing foreclosure.)

Does the means test apply to non-consumer debtors? I've never really understood that. It was a non-issue for me as I was well under median.

[HHM]

Does the means test apply to non-consumer debtors? I've never really understood that. It was a non-issue for me as I was well under median.

Correct, if the "majority" of your total debt is non-consumer, then you simply by-pass the means test, heck you can have $5000 in DMI and still do chap 7, there is a case in CO right now where the debtor has nearly $80,000 (per month) of DMI and is getting a non-consumer chapter 7. (but granted, he has 75 million in debt, failed real estate developments).

[angles]

Correct, if the "majority" of your total debt is non-consumer, then you simply by pass the means test, heck you can have $5000 in DMI and still do chap 7, there is a case in CO right now where the debtor has nearly $80,000 (per month) of DMI and is getting a non-consumer chapter 7. (but granted, he has 75 million in debt, failed real estate developments).

that is interesting.

[HHM]

Not that interesting, just the way BK Code 707(b)(1) works