At the Law Office of Christopher P. Walker, P.C., we work with many clients in the Anaheim area who have investment properties. Investment properties can bring in a substantial amount of supplemental income, so naturally many people who are considering bankruptcy worry about how their filing will affect these properties.
Chapter 7 is the most common type of personal bankruptcy. It is used to discharge unsecured debts, including medical bills and credit card debt. Often, you are able to keep your home while getting rid of debt, which is why many people file for Chapter 7. If you have investment properties, however, Chapter 7 is probably your worst option. Since you do not live in your investment property full time, it will likely have to be sold to pay off your unsecured debts.
If you want to protect your investment properties, Chapter 13 and Chapter 11 are your best options. Under Chapter 13, you can create a repayment plan that fits within your means and allows you to maintain ownership of your investment properties. If you rent out your investment property, Chapter 11 may be a good fit. It allows you to negotiate debt with your lenders and often allows you to keep your investment property. Both Chapter 11 and Chapter 13 allow you to continue earning income from your investment property.
At our law firm, we handle all types of bankruptcy and have experience working with people who own investment properties. We will carefully assess your unique situation to determine the right option for you. To learn more about protecting your investment property during bankruptcy, visit our Bankruptcy And Investment Properties page or contact us to schedule a consultation.