Can we file bankruptcy on investment properties? 10 Answers as of February 12, 2011

I am in the process of divorce, we have 200k neg. equity in properties. can we, or he, file bankruptcy on investment properties?

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Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
Yes, in general, you can file bankruptcy, list your investment properties, surrender your investment properties, and be discharged from any liability on your loans for the investment properties. For specific advice about your facts and circumstances, call me.
Answer Applies to: California
Replied: 2/12/2011
Ursula G. Barrios Law
Ursula G. Barrios Law | Guillermo Machado
Simple answer is yes. You can file against those investment debts, and if most of your debt is non-consumer business debt, you don't need to pass the means test (meaning your income will not be an issue in qualifying). Thank you,
Answer Applies to: California
Replied: 1/25/2011
The Law Offices of Robert L. Driessen
The Law Offices of Robert L. Driessen | Robert L. Driessen
I am not sure if you want to just file on the properties or on all your assets. Are your properties in a holding corporation? The best thing to do is sit down with an bankruptcy attorney.
Answer Applies to: California
Replied: 1/24/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
Of course you can. The question is which chapter you're eligible for and whether or not it is in your best interest to file bankruptcy. The only way to determine that is to have a comprehensive consultation with a bankruptcy attorney.
Answer Applies to: California
Replied: 1/24/2011
Greifendorff Law Offices, PC
Greifendorff Law Offices, PC | Christine Wilton
Yes, under chapter 11 likely.
Answer Applies to: California
Replied: 1/24/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Assuming the investment property is not in the name of a corporation, LLC or other legal "person" or entity that you own, the bankruptcy would be a personal bankruptcy. You and/or your husband would file the bankruptcy and include everything, including the investment property. In fact, you are required to include all property you own or in which you have any interest in the bankruptcy case and any debts associated with that property. You can still file jointly with your husband if you want until the judgment of dissolution is entered.

    You can surrender the property or state in the bankruptcy papers that you intend to either keep it and pay it or modify the loan. Obviously if you do not pay the mortgage the bank will eventually foreclose but might need permission from the bankruptcy court to foreclose.

    If you have a second or junior deed of trust on a property and the property is in both names, you should file jointly if you are on talking terms with your husband because the second loan will continue to be a liability to the person not filing for bankruptcy after foreclosure and filing jointly will save you money on filing plus probably simplify your divorce by eliminating all the debts that otherwise would have to be apportioned by the family court in your divorce.

    Again, if you are in terms with your husband you should probably meet together with a bankruptcy attorney to file jointly.

    If that not practical then each of you can file separate cases. If the investment property is held in a corporation or LLC that you own then that entity can file for bankruptcy but it gets more complex at that point and you need to meet with a local bankruptcy attorney to see if that makes sense in your situation.
    Answer Applies to: California
    Replied: 1/24/2011
    Uriarte & Wood, Attorneys at Law
    Uriarte & Wood, Attorneys at Law | Robert G. Uriarte
    you cannot pick and chose who you file bankruptcy against. If the investment properties are held by you personally and you file personally, then the investment properties must be included in the filing. You may want to file prior to the divorce decree so that the both your debts are dealt with. Yo really need to sit down and talk to counsel in order ascertain the best course of action.
    Answer Applies to: California
    Replied: 1/24/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    That depends, are the investment properties in a corporation? If so, the corporation can file bankruptcy. If you own hem in your own name you can file bankruptcy. You should consult with a lawyer to make sure you are otherwise eligible and that you do not exceed the allowed exemptions.
    Answer Applies to: California
    Replied: 1/24/2011
    The Pedigo Law Corporation
    The Pedigo Law Corporation | Brian T. Pedigo, Esq.
    Yes you can discharge personal liabilities (if any) on investment property.
    Answer Applies to: California
    Replied: 1/24/2011
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