Is there any way to protect an asset (2nd home) from a bankruptcy? We have two homes, in different states, mortgaged by the same lender. Home A has some equity and is a rental. Home B is our primary residence and we hate it (neighborhood, location, school system). We cannot dump Home B in this market and break even. Assuming renting it is not an option, can we file a bankruptcy and still retain Home A? Home A also has an equity loan taken out against it. What other alternatives are there for us?
It is possible that a way could be found to save your primary residence. It depends on a number of things, including whether there is equity in your home, and if so, how much and whether it fits within the allowable exemptions in your state. If there is no equity or if the equity fits within allowable exemptions, you may be able to reaffirm the first mrtgage, and either reaffirm or strip off the secnd mortgage.
You should consult an experienced consumer bankruptcy attorney in your state to discuss in detail. The answers depend on case-specific details.
Speeding / Traffic Ticket Lawyer
I do not practice bankruptcy law, but based upon what I do know regarding the subject, I find it very unlikely that in a Chapter 7 filing that you would be able to retain what you describe as Home A, a rental property with some equity.
For more detailed information and possible alternatives, you should arrange for a consultation with a Virginia bankruptcy attorney.
M.E. Hendrickson, Esq.
Alexandria, Virginia 22314