Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
1) Are you planning on filing a Chapter 7 or a Chapter 13 Bankruptcy?
2) What is the current market value of the California house?
3) What is the balance on the mortgage?
4) Have you lived continuously in Colorado for the past 2 years?
Your attorney gave you incorrect information, or you misunderstood her, as it is not true the trustee will take your rental income, any more than the trustee will take any regular income.
Additionally, since the rental house has no equity, you would be able to keep it.
I think this is what you wanted to know. If not, please let me know.