Second property and Ch 7?

[mattfro]

I have a townhouse that's in my name that my brother lives in. Will I be able to keep that if I don't live there? I'm in Colorado. Anyone know? He and his roommate do pay me $1000 a month rent, and I cover the HOA's, water and insurance. It about a net loss of $100 per mo.

[Help!]

I can't answer your first question as to whether or not you can keep it, but I can tell you that the $1000 you receive must be included as income on the means test. You probably already knew that.

[Joe Farmer]

that depends on the exemptions in your state.

You may lose $100 a month but it also may have equity to feed the trustee. In my state only a primary dwelling is protected, but if you have a second with no equity I think the trustee abandons that sort of thing.

[JRScott]

As Joe says depends on local exemptions. If you can exempt the equity of the townhouse if there is any you might can keep it. You should ask a local bankruptcy attorney. You'll need to have a copy of the loan and an appraised value of the property.

[HHM]

It all depends on whether the townhouse has equity. If the townhouse has non-exempt equity, the trustee will usually give you 2 choices.

1. Surrender the property to the trustee, and the trustee will sell it.
2. Pay the trustee the equivalent value of what he would get if he sold it.

In option 1, you obviously do not keep the property; option 2 allows you to keep it, but assumes you have the means to actually pay the trustee the value.