How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask cfortunato Your Own Question
cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
14232603
Type Your Bankruptcy Law Question Here...
cfortunato is online now
A new question is answered every 9 seconds

we are in the midst of filing bankruptcy.

Resolved Question:

we are in the midst of filing bankruptcy. we have a home in California that our daughter lives in and pays rent to cover the mortgage payment. my attorney stated that if we received rent that we had to turn it into the trustee as we cannot get income from the property. if we have to do that we will not be able to keep up with the mortgage. Also she stated that if we have any equity in the home that we would not be able to keep it. now i'm not sure if she meant we would lose the home or just the equity. Can you please help me in this matter. I live in Colorado and have a home here. thank you Joyce
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.

Hi JACustomer,

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?

Customer: replied 5 years ago.
yes we are doing a chapter 7. the last time I looked it was about 80,000. the balance is 123,000. we have lived in colorado 16 years
Expert:  cfortunato replied 5 years ago.

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.

Thank you!

cfortunato and 3 other Bankruptcy Law Specialists are ready to help you