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cortrightlaw
cortrightlaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 513
Experience:  Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
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Im about to file for bankruptcy. I have a investment property

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I'm about to file for bankruptcy. I have a investment property that I stopped making payments due to hardship. This property is about 60k underwater. I probably will loose this property during bankruptcy. What I wanted to ask is if if trustee will allow me to keep this property after bunkrupcy (due to negative equity maybe) what will happen to the 60k deficiency on this property after bankruptcy (difference between the current value of the property and loan amount) how will this be treated?

cortrightlaw : If you surrender the property during your bankruptcy te deficiency will be discharged. If you keep the property you will still be responsible for the total amount owed on the loan and I will remain secured to the property. Te only way you can cram down a first mortgage on a rental property is with a chapter 11 bk which is an expensive and difficult process.
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