Is it possible to keep two properties if you file for Bankruptcy? 23 Answers as of October 31, 2013

Wondering if it's possibly to keep my primary home and investment property if I file Chapter 13. Thanks.

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Law Office of Thomas C. Phipps | Thomas C Phipps
Yes. You can do that in a Chapter 13 case.
Answer Applies to: Missouri
Replied: 10/31/2013
Stephens Gourley & Bywater | David A. Stephens
It is possible, depending on exemptions, equity in the properties and how much you pay into the plan.
Answer Applies to: Nevada
Replied: 9/18/2013
Law Office of Lynnmarie A. Johnson
Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
Yes, you may have to pay more to the unsecured if you have more equity in them than you can exempt, but you can generally keep your home and an investment property.
Answer Applies to: Michigan
Replied: 9/18/2013
The Law Offices of Deborah Ann Stencel | Deborah A. Stencel
The answer is "it depends." To answer your question, an attorney would need to know your income, total debt, types of debt, values of the properties, and whether you can make a profit on the investment property. In theory, you can keep two properties in a 13, but you need to be able to afford them. Talk to an attorney.
Answer Applies to: Wisconsin
Replied: 9/18/2013
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
If you are paying 100% of your debts, then it is no problem and under some other circumstances.
Answer Applies to: New York
Replied: 9/18/2013
    Armstrong Kellett Bartholow P.C.
    Armstrong Kellett Bartholow P.C. | Gary Armstrong
    Generally speaking, the answer is yes. But the devil is in the details as they say. Discuss the details with your bankruptcy lawyer.
    Answer Applies to: Texas
    Replied: 9/18/2013
    Tokarska Law Center
    Tokarska Law Center | Kathryn U. Tokarska
    Sorry but the answer to this question will depend on the facts of your case. This is impossible to answer this without understanding your financial situation: your income, your debts, your assets. I can tell you that failure rate for individuals attempting to file a chapter 13 without an attorney is quite a bit less than 5%. Some districts have reported success rates among self-represented of less than 1%. Talk to a competent local bankruptcy attorney and get the answer to this question and many more you may not have even considered.
    Answer Applies to: California
    Replied: 9/18/2013
    Law Offices of Daniel J Winter
    Law Offices of Daniel J Winter | Daniel J Winter
    The most precise answer is that it depends. It is possible to keep a house you live in and an investment property in bankruptcy. However, there are many factors to consider before you can be sure. You need to contact an experienced bankruptcy attorney to discuss your whole financial situation before filing any type of bankruptcy case. You may qualify for Chapter 7 or Chapter 13 Bankruptcy. You'll need to know how much is owed on each property, how much each property is worth, and whether you are up to date or not on the payments, how much you get in rent, among other things, when you speak to an attorney. Many bankruptcy attorneys offer free in-person consultations.
    Answer Applies to: Illinois
    Replied: 9/18/2013
    Law Office of Jeffrey Solomon
    Law Office of Jeffrey Solomon | Jeffrey Solomon
    Chapter 13 can provide a method to retain both your homestead and investment property. There are many techniques available to restructure the investment property mortgage. Unlike home mortgages, a first mortgage in investment property can be reduced to the value of the property. You should consult an attorney about the specifics of your case.
    Answer Applies to: Florida
    Replied: 9/17/2013
    The Needleman Law Office | Scott Needleman
    In Ohio, it is possible to keep two homes if your investment property is an income producing property. If it is vacant, no tenants, it would be difficult to make an argument to the Court that you need to retain it to aid in an effective reorganization.
    Answer Applies to: Ohio
    Replied: 9/17/2013
    Stuart P Gelberg
    Stuart P Gelberg | Stuart P Gelberg
    It's possible. It depends on what you pay to your general creditors
    Answer Applies to: New York
    Replied: 9/17/2013
    Law Offices of David A. Tilem | Michael Avanesian
    Yes you can. How much money you can make/save etc. will depend on your actual circumstances. There is also the possibility of a Chapter 11, which, on paper seems expensive but when compared to what happens in a 13, is much cheaper!
    Answer Applies to: California
    Replied: 9/17/2013
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Absolutely, although the amount you will have to pay to your creditors will have to be higher than if you surrendered the investment property. Also, the investment property should be carrying its own weight, if you know what I mean!
    Answer Applies to: Nevada
    Replied: 9/17/2013
    DUSTIN DEISSNER
    DUSTIN DEISSNER | DUSTIN DEISSNER
    Under the State homestead exemption ($125,000) you only can have one property (home and appurtenant buildings) and that has to be your actual (or planned actual) residence. The Federal exemption is only $15,000 ($30,000 joint) for the principal residence but $7500 ($15,000 jt.) of unused exemption can be used for any other property. However in a Chapter 13 if you complete the Plan and pay debts off, then as long as the plan payments total as much as the chapter 7 liquidation would have been, you can keep everything.
    Answer Applies to: Washington
    Replied: 9/17/2013
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    You can keep your primary as long as you have less than $550,000 equity and are current with your mortgage or can otherwise cure arrears. As for investment property, it depends on if there is any equity available to pay unsecureds (if so you'll need to figure out how to pay them-ie refinance or contribute some other exempt asset to pay them) and whether it is costing you anything or paying for itself (can't take away disposable income from unsecured creditors).
    Answer Applies to: Nevada
    Replied: 9/17/2013
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    This is not the right forum to seek specific personalized legal advice. The answer to your question is directly related to many facts and details that are beyond the scope of this site. Call an experienced chapter 13 attorney and arrange for a consultation.
    Answer Applies to: Colorado
    Replied: 9/17/2013
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Yes, it is possible. You will need an aggressive sharp lawyer.
    Answer Applies to: California
    Replied: 9/17/2013
    Sanford M. Martin, P.A. | Sanford M. Martin
    Yes, it is possible to keep properties and debts which allows debtors under Chap 13 to work out their problems over 3-5 yrs through a Chap 13 Plan.
    Answer Applies to: Florida
    Replied: 9/17/2013
    Law Office of Stuart M. Nachbar, P.C.
    Law Office of Stuart M. Nachbar, P.C. | Stuart M. Nachbar
    If you pay any equity in them to the trustee, you may be able to.
    Answer Applies to: New Jersey
    Replied: 9/17/2013
    Law Office of Barry R. Levine | Barry R. Levine, Esq.
    If the investment property is factored into your ch. 13 plan (you should check the statutory limits on ch. 13s because with a primary residence and investment property, you may have to file a ch. 11), you should be able to retain it.
    Answer Applies to: Massachusetts
    Replied: 9/17/2013
    Danville Law Group | Scott Jordan
    Yes, it is possible. Chapter 13 is designed to allow the debtor time to repay their debts and keep their properties.
    Answer Applies to: California
    Replied: 9/17/2013
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Only if the investment property has a positive cash flow. Most trustees will not allow you to use funds which otherwise could be part of your Chapter 13 plan payment to cover negative cash flow. You also need to be aware that if there is equity which cannot be exempted, you need to pay to your creditors in a Chapter 13 as much or more than they would receive if you were a Chapter 7 Debtor, and there are ceilings for the total amount of unsecured and secured debt you can have in a Chapter 13. If you exceed those, you cannot be a Chapter 13 Debtor. You should consult with an attorney experienced in Chapter 13 cases.
    Answer Applies to: California
    Replied: 9/17/2013
    Gregory L. Bosse Attorney at Law
    Gregory L. Bosse Attorney at Law | Gregory Bosse
    Yes. If your plan is approved you do not have to give up any property.
    Answer Applies to: California
    Replied: 9/17/2013
Click to View More Answers:
12 3 4 Free Legal QuestionsConnect with a local attorney