Bankruptcy Law

Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.

Ask a Lawyer,
Get an Answer ASAP!

Bankruptcy Law

If i filed bankruptcy would i be able to keep my investment

Customer Question
property? I am trying to...
If i filed bankruptcy would i be able to keep my investment property? I am trying to figure out what would be better to get rid of all the credit card debt (by filing bk) or walking away from the investment property... Please help
Submitted: 8 years ago.Category: Bankruptcy Law
Show More
Show Less
Ask Your Own Bankruptcy Law Question
Answered in 2 hours by:
5/6/2009
Bankruptcy Lawyer: Phillips Esq., Attorney-at-Law replied 8 years ago
Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 20,274
Experience: B.A.; M.B.A.; J.D.
Verified
I need more information.

What state are you in?

What are your assets--primary home, investment properties, etc.?

What is value of your primary home?

How much do you owe on it?

What is the value of your investment property?

How much do you owe on it?

What is your salary?

How many people are in your household?

How much do you owe on your credit cards?
Ask Your Own Bankruptcy Law Question
Customer reply replied 8 years ago
1) Ca
2)long story short its a rental property i now live in my husbands home which i have nothing to do with
3)primary home is husbands (if i filed bk it would just be me not him, we dont have anything together)
4&5)Rental property is worth $210,000 i owe on it $317k
6)I make about 45k
7)3
8)i owe about 25k
My lenders have denied me many times for a loan modification on the rental property.
Bankruptcy Lawyer: Phillips Esq., Attorney-at-Law replied 8 years ago

Thank you very much for getting back to me. I will now address your concerns.

If i filed bankruptcy would i be able to keep my investment property? I am trying to figure out what would be better to get rid of all the credit card debt (by filing bk) or walking away from the investment property...

Response: Unfortunately, you cannot keep your rental property if you file for bankruptcy relief unless you make payments on the mortgage and keep the mortgage payments current. Since the mortgage is upside down--you owe more on it than the property securing it is worth, it may not be such a good idea to keep paying on it--pouring money down the drain. If you walk away and the property is foreclosed the lender may come after you for the deficiency after the foreclosure sale depending on the type of foreclosure method used: judicial or non judicial foreclosure.

In a judicial foreclosure, the foreclosure sale is accomplished through the Courts and the lender may file for deficiency judgment. On the other hand, in a non judicial foreclosure the lender relies on the power of sale contained in the mortgage or deed of trust for authority to foreclose. In this type of foreclosure, the lender cannot come after you for deficiency after the foreclosure sale.

You may also consider bankruptcy to get rid off your credit card debts.

You might be eligible to file for a Chapter 7 bankruptcy relief if you meet the income guidelines for your household size in your state. If your income is equal to or less than the current income guidelines for your household size in your state, you may be eligible to file for a Chapter 7 bankruptcy all things being equal. In Chapter 7, if the Court grants you a discharge your debts will be wiped out. You would get a clean state, a fresh start.


These are the current income guidelines for the State of California:

Household of one person $49,182.00
Household of two persons $65,097.00
Household of three persons $70,684.00
Household of four persons $79,971.00
Add $6,900.00 for each additional individual


If you are not eligible for a Chapter 7, you may be able to file a Chapter 13 if you have disposable income —extra income after your necessary expenses every month to fund a Chapter 13 plan and you must also meet the debt limit requirement. You may able to file for Chapter 13 if your unsecured debts are less than $336,900.00 and secured debts are less than $1,010,650.00. In Chapter 13, you prepare a payment plan and make payments to your creditors on 3 or 5-year plan. If your income is equal to or less than the current income guidelines for your household size in your state, you would do a 3 year plan. However, if your income is more than the current income guidelines for your household size in your state, you would do a 5 year plan.

You must receive budget and credit counseling from an approved credit counseling agency within 180 days before your bankruptcy case is filed. This means that if you are filing your bankruptcy case on Monday, you need to do the credit counseling on Sunday, the day before, not on Monday the day that you are filing for bankruptcy relief, and if you are filing your bankruptcy on Tuesday, you need to do your credit counseling by Monday and not on Tuesday, which is the day that you are for the bankruptcy relief. You cannot do the credit counseling the same day that you are filing for bankruptcy protection. The agency will review possible options available to you in credit counseling and assist you in reviewing your budget. Different agencies provide the counseling in-person, by telephone, or over the Internet.


It is usually a good idea for you to meet with an attorney before you receive the required credit counseling. Unlike a credit counselor, who cannot give legal advice, an attorney can provide counseling on whether bankruptcy is the best option. If bankruptcy is not the right answer for you, a good attorney will offer a range of other suggestions. The attorney can also provide you with a list of approved credit counseling agencies, or you can check the website for the United States Trustee Program office at http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm


After your case is filed, you must complete an approved course in personal finances. This course will take approximately two hours to complete. Your attorney can give you a list of organizations that provide approved courses, or you can check the website for the United States Trustee Program office at http://www.usdoj.gov/ust/eo/bapcpa/ccde/de_approved.htm


Consult a local bankruptcy attorney for further explanations of your rights and responsibilities.


The sites below are good resources for finding bankruptcy attorneys in your area:


http://www.nacba.org


http://www.lawyers.com


http://www.attorneypages.com


http://www.rocketlawyer.com


http://www.justia.com






Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 20,274
Experience: B.A.; M.B.A.; J.D.
Verified
Phillips Esq. and 87 other Bankruptcy Law Specialists are ready to help you
Ask your own question now
Ask Phillips Esq. Your Own Question
Phillips Esq.
Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 20,274
20,274 Satisfied Customers
Experience: B.A.; M.B.A.; J.D.

Phillips Esq. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Terry L.

Terry L.

Attorney

2,679 satisfied customers

Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.

cortrightlaw

cortrightlaw

Attorney

511 satisfied customers

Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.

JoeLawyer

JoeLawyer

Attorney

376 satisfied customers

Attorney in the practice of Bankruptcy Law since 1996

A.J.

A.J.

Attorney

262 satisfied customers

Experienced consumer bankruptcy attorney.

Fritz

Fritz

Attorney

209 satisfied customers

Florida attorney with extensive experience in Chapter 7 and Chapter 13 consumer bankruptcy cases

Law Girl

Law Girl

Attorney

153 satisfied customers

I am an attorney.

Paul K, Esq.

Paul K, Esq.

Attorney

141 satisfied customers

10 years Exp., Great customer service, Prompt responses.

< Previous | Next >

Related Bankruptcy Law Questions
I have the same question. I had a Chapter 7 bankruptcy 13
I have the same question. I had a Chapter 7 bankruptcy 13 years ago. I have not seen on my credit report for the last 6 years. The SBA question says have you ever had a bankruptcy? Is it fair to say n… read more
INFOLAWYER
INFOLAWYER
Partner
Doctoral Degree
56,303 satisfied customers
Can credit card debt be listed on schedule j under other
can credit card debt be listed on schedule j under other question 21 … read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
7,387 satisfied customers
What happens i file chapter 7 bankruptcy and judge denies my
Second opinion] What happens i file chapter 7 bankruptcy and judge denies my reaffirmation agreement...will they repo my car or will the co signer be able to keep it… read more
DrakeLAW
DrakeLAW
Juris Doctorate
984 satisfied customers
I am probably going to need to file a Chapter 7 bankruptcy
I am probably going to need to file a Chapter 7 bankruptcy in Minnesota because Geico is suing me for $100K for personal injures sustained by someone else that was involved in an accident. I am fighti… read more
DrakeLAW
DrakeLAW
Juris Doctorate
984 satisfied customers
I have a chapter 7 in process in las vegas, nv. I have a
I have a chapter 7 in process in las vegas, nv. I have a court date set for a reaffirmation agreement for my mortgage. I would like to change my court date to a more current date. What motion with the… read more
Phillips Esq.
Phillips Esq.
Attorney-at-Law
20,274 satisfied customers
I filled chapter 7 and discharged a mortgage with Wells
I filled chapter 7 and discharged a mortgage with Wells Fargo in 2009. I did not reaffirm the mortgage but I continued making payments for these eight years. I requested a payoff from Wells Fargo and … read more
DrakeLAW
DrakeLAW
Juris Doctorate
984 satisfied customers
About 15 years ago I had a credit card debt of $10,000. My
About 15 years ago I had a credit card debt of $10,000. My friend had a Discover Card and offered to transfer my debt onto her card because at the time it had no interest charge offer at the time. I w… read more
Barrister
Barrister
Attorney/Landlord/Realtor
Doctoral Degree
35,358 satisfied customers
I have filed a chapter 7 back in June of this year.. today I
I have filed a chapter 7 back in June of this year.. today I got into an accident to which the other party was at fault.. i has to go to the hospital... if I am … read more
Roger
Roger
Litigation Attorney
Doctoral Degree
26,871 satisfied customers
I am considering filing a chapter 7 personal bankruptcy. I
I am considering filing a chapter 7 personal bankruptcy. I know some years ago there were some changes in the bankruptcy laws. What I need to know, first of all, is how much money can be retained in a… read more
LegalGems
LegalGems
Juris Doctorate
10,718 satisfied customers
Interested in information concerning personal chapter 7
interested in information concerning personal chapter 7 bankruptcy as a member of a 50/50 LLC … read more
DrakeLAW
DrakeLAW
Juris Doctorate
984 satisfied customers
Regarding my chapter 7 ProSe on the Reaffirmation $2000
Regarding my chapter 7 ProSe on the Reaffirmation $2000 behind on payments, $6000 equity in car Obviously, we don't want to be Repo'd with all that equity.My husband went to the reaff hearing today an… read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,679 satisfied customers
Regarding my chapter 7 Reaffirmation hearing tomorrow,
Regarding my chapter 7 Reaffirmation hearing tomorrow, husband is going without me. $2000 behind on payments, 6000 equity in car. When I try to talk to the people at "ascension capital" who do Cap1's … read more
Phillips Esq.
Phillips Esq.
Attorney-at-Law
20,274 satisfied customers
We filed chapter 7 bankruptcy in California with the intent
We filed chapter 7 bankruptcy in California with the intent on reaffirming the car.We are 90 days out with a report of no distribution and "awaiting discharge" on Pacer.We have $6000 equity in the car… read more
DrakeLAW
DrakeLAW
Juris Doctorate
984 satisfied customers
BANKRUPTCY: Debtor is filing Chapter 7 bankruptcy; and
BANKRUPTCY: Debtor is filing Chapter 7 bankruptcy; and elected to surrender their vehicle. Can the Creditor repossess the vehicle while the bankruptcy case is still open? Debtor has not received a dis… read more
LegalGems
LegalGems
Juris Doctorate
10,718 satisfied customers
BANKRUPTCY: A debtor wants to file a personal Chapter 7
BANKRUPTCY: A debtor wants to file a personal Chapter 7 bankruptcy and owns a small business. They are filing mostly consumer debts. Can the Debtor continue to run their small business and generate in… read more
LegalGems
LegalGems
Juris Doctorate
10,718 satisfied customers
This is a Chapter 7 question. The Debtor was unemployed for
This is a Chapter 7 question. The Debtor was unemployed for 4 of the last 6 months, having worked the last 2 months. Her currently monthly income amount is above the local median, but averaged over th… read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,679 satisfied customers
My parents filed chapter 7 bankruptcy. They received a
My parents filed chapter 7 bankruptcy. They received a letter back from the attorney they hired and the letter stated, "they are over the limit on the allowable exemptions for a chapter 7".What does t… read more
Ray
Ray
Lawyer
Doctoral Degree
30,888 satisfied customers
I have substantial credit card debt, and i am currently
I have substantial credit card debt, and i am currently unable to make the monthly payments.… read more
Ray
Ray
Lawyer
Doctoral Degree
30,888 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x