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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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Would like to to if i could keep my two rental properties if

Resolved Question:

Would like to to if i could keep my two rental properties if I file chapter 7. My monthly income is $6836 including unemployment. My expenses are $10,406. I live in NJ with 3 in my household including myself.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.

Hi Customer,

1) How much equity - if any - do the rental properties have?

2) How much equity - if any - does your residence have?

3) What is the net monthly rental income (after subtracting expenses)?

4) Is there any other income in your household besides the rental income and your unemployment?

Customer: replied 6 years ago.

One property has no equity and has a $23,000 lien against it, the other might have about $20,000 in equity.

 

My residence does not have any equity. I have two mortgages linked to it.

 

There is actually no income after expenses which is why I need to look into bankruptcy. What I do is take money that I am suppose to use for the expenses and use it for my household otherwise my home would be in foreclosure amongst other things.

 

My wife works part time about $150 -$200 per month

Expert:  cfortunato replied 6 years ago.

Based on the information you provided, you would be able to file a Bankruptcy. The unemployment income is not included when determining whether or not someone can file. Additionally, since there is no equity in one, and very little equity in the other rental home, you should be able to keep both of these.

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