Upside down on a house in another state...Will I lose it if I file chapter 7?

Filing a chapter 7 does not cause you to lose the house. We can protect the house, if you want to do so. Whether you should keep it depends upon factors such as how you are currently using it, what it could be used for, what market it is in, how much it straps you financially, etc. If you would like to discuss the matter, please feel free to contact me.

Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship. Do NOT rely on anything I have written here -- You should contact a lawyer in your area immediately after reading my posting.

The following disclosure is required pursuant to IRS Circular 230: unless otherwise expressly indicated, any federal tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.

In all likelihood, you can retain the property. Whether it is advisable is another question, basically a risk and benefit analysis that can be looked at as part of the process of filing. If you file, you will have limits on filing again for some time, so a poor decision to keep the property should be avoided.

The scope of this space does not afford an opportunity to assess the situation and advise you. I recommend you assemble for legal consultation: (1) your income information for February through August, including wages and unemployment during that period; (2) all your bills (several months' copies neatly assembled); (3) last four years' tax returns; (4) a credit report; and (5) other information that may apply, such as copies of lawsuits. Set up an appointment at your earliest convenience to afford the most opportunity in which to be advised about your best course.