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Bankrupcy on my rental property

Posted on: 14th Feb, 2011 04:35 pm
I live in California and my 1st and 2nd mortgage are both HELOC same lender BofA on my rental property. My wife is the only working right now I got laid off almost two years now. First Heloc $225K, Second 200K. We only receiving $1,200.00 a month on my rental good enough to pay the First heloc. My question is ca i file bk on my rental property and keep my primary residence. :shock:
Hi louie!

Welcome to forums!

If you file bankruptcy, you'll have to include both the properties and there are chances that both the properties may be sold off in order to pay off your creditors.

Feel free to ask if you've further queries.

Sussane
Posted on: 14th Feb, 2011 06:27 pm
Thank you sussane, the problem is both primary and rental property are under-water.
Primary balance $360,000 and market price is $350,000. Rental property market price between $180,000 to $200,000 not enough to pay off creditors.
Posted on: 15th Feb, 2011 08:36 am
Hi louie,

Though the property value is not enough to pay off the your lenders, the trustee will still sell off the property in order to pay off as much dues of your creditors as possible.

Thanks
Posted on: 15th Feb, 2011 10:10 pm
Which bk should i file 7 or 13. And what's going to happen with the remaining balance are they going to be forgiven? and what about my IRA and my wife 401K are they going to garnish?

Thanks
Posted on: 16th Feb, 2011 07:58 am
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