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I would like to know if I can keep my house, now a rental property because I could not afford thje payment, if I file chapter 7?

Las Vegas, NV |
Attorney answers 4


I recommend consulting with a bankruptcy attorney in your area. While in theory you should be able to keep your rental property in chapter 7 (assuming that the equity, if any, can be exempted), the real question is whether you can afford to make the monthly payments now, during your case and upon the conclusion of your case. Should your income increase (rental income, SSDI, etc.) it may be possible to save the house through the filing of a chapter 13. You would be well served to speak with a bankruptcy attorney at a free consultation so that your entire financial situation can be discussed. Your rental property questions are just a small slice of the pie. You need to discuss and understand the big picture with an experienced bankruptcy attorney.


Please contact a local experienced bankruptcy counsel, as there are many moving parts of the bankruptcy, such as exemptions to be looked into, equity in property, amount in arrears, etc., all of which will play a major factor in determining if you should file a C7, or mabe a C13. Good Luck.

The previous information is solely for informational purposes only. If you have further questions, please contact an attorney in your area for more specific answers. Responding to your question in no way creates an attorney/client relationship, and none of the specific guarantees of privacy exist. If you have found this information helpful, kindly check the "helpful" box.


I am confused by your question. You can not file bankruptcy and keep a house without making the mortgage payments. The lender will still be able to foreclose on the property.

If you are not making the mortgage payments, the bankruptcy trustee will take over as the landlord and have the tenant make the rent payments to your bankruptcy estate. The rent money collected until foreclosure will be distributed among your creditors.

Hope this perspective helps!


A Chapter 7 bankruptcy will not help you keep a house. It can certainly rid you of a mortgage obligation, as that is a dischargeable debt. But if you are behind on payments or simply cannot afford to make the payments any longer, a Chapter 7 will not catch you up on those payments or reduce those payments. A Chapter 13 or Chapter 11 bankruptcy might assist you with those types of problems, but with limited income, those types of bankruptcy aren't really an option for you. As others have suggested, you really should sit down with a bankruptcy attorney and explore your debt relief options.

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