How will this work? Rental property.

[wminotauro1]

I bought a rental property with my friend. It isnt doing very well. I have other debt as well and am probably going to have to file bankruptcy here soon. What will happen to the rental property that me and my friend are each on the mortgage? I want to drop it and she would like to as well but she does not need or want to file bankruptcy like I do.

[keepmine]

Include the debt in your filing and upon your discharge, you will be free of any obligation to repay. The responsibility will fall 100% on the other party.

[Boscoe]

I am in the same boat as you..

Here are the options, none of them good:

1) Try to sell or rent to stay afloat. Most people can only do this for so long....

2) Give it up, let the lender foreclose or get lucky and do a short sale with the lender. See other threads for that subject. Either way, your credit takes a hit.

3) File bk (like I did).

The BK will show this rental property as zero balance on your credit report, will fall off in 7 years, but only hurt you bad for a couple. If you let it foreclose, the lender could chase your for a deficiency judgment and the amt due stays on your credit as a balance owed for 7 years, which will hurt you for at least that long.

I know, it sucks. This market is screwing so many people.