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.