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I have a rental property, 100k upside down, if I foreclose will filing bankruptcy protect me from having to pay the difference?

Orlando, FL |

Original Mortgage
Tenant occupied

Attorney Answers 5


  1. If you receive a discharge in a bankruptcy, the creditor's remedies will be only to take the property; it can not seek to collect any money from you for a deficiency.

    I hope you found this response to be of assistance. This response shall not be considered the rendering of legal advise but instead a general response to a general question. While Avvo is a wonderful resource, nothing can be a substitute for an in-depth consultation with an attorney in the jurisdiction in which the law is to be applied. This response shall not be deemed to create an attorney-client relationship, nor shall it create an obligation on the part of the attorney to respond to further inquiry from the questioner.


  2. Yes, unless the creditor is somehow able to successfully object to this debt being discharged, then the discharge will prevent them from obtaining a deficiency.

    The response given is general in nature and based upon limited information. It does not and cannot replace that of a proper consultation with a qualified attorney. You should not act upon this Information alone, but should seek legal counsel prior to taking any action.


  3. That is not entirely correct. The lender DOES have the ability to file a deficiency claim. But there are time limits. They usually don't do it, but there is a small chance.

    It also depends on whether you are filing a chapter 7 or chapter 13 as to whether you have to pay or not.

    Too many facts are unknown.


  4. Unfortunately, more information is needed to give you a specific answer. If you are able to file a Chapter 7 bankruptcy the deficiency on the debt will be discharged and the bank then only has rights to take the property, not to pursue you for the debt.

    If you are unable to file a Chapter 7 you may have the option of a Chapter 13 bankruptcy. In the Chapter 13 you may be required to pay some of the deficient debt. There are many factors though that determine if you are required to pay some, all or none of it.

    Whether you can file a Chapter 7 or 13 or whether you would be required to pay are case specific so you would need to have a full consultation to determine the options available to you.


  5. In order to answer your question more information is needed. But generally speaking, if you were to qualify and file a chapter 7 the debt assosciated with the investment home would be discharged as to you personally but the lender would still have what is called "in rem" relief availabe to them. This means that although the lender would not be able to seek anything from you they would be allow to foreclose and take possession of the property. If you would like to dicuss your options I recommend contacting my office to set up a free consultation.

    Michael Ferrin, Esq.
    Anderson & Ferrin Attorneys at Law P.A.
    1214 E. Livingston St
    Orlando, FL 32803
    Phone (407)-412-7041
    Fax (407)-802-2283

    Please note that THESE COMMENTS ARE NOT INTENDED AS LEGAL ADVICE and are for informational purposes only. This response is not intended to create any attorney-client relationship and is only based on the limited facts given. The response might change should additional facts be learned and should not be relied on as legal advice. It is recommended that you consult with an attorney who can properly assess the situation, as well as all pertinent facts, prior to taking any action based on the foregoing statements

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