If I file Bankruptcy, will they take my savings?

I am an investor and have almost 1 million in rental property debt. I was doing quite well in the business until this year when people decided to stop paying rent and my houses (flips) were not selling. I can no longer make these payments as I am currently in the negetive per month to live. I have basically been paying my mortgages off with a line of credit in hopes that my properties would sell before it got too bad and unfortunately nothing has sold. I have talked to an attorney and he told me to stop making all my investment mortgage payments for about 4 months, if after that the banks do not help me modify the loans, then I should file bankruptcy. Well in the meantime, while I'm not paying for all these mortgages and keep collecting rents and end up with possibly $50,000+ in my savings account, will the bankruptcy court take this money from me if I'm filing just on secured debts (mortgages)?

If you are going to include the properties in BK, there is really no point in making payments. However, the trustee isn't going to let you walk with 50K.

You may just be better off just doing a foreclosure and leave the BK option for in the future.

Yes, the BK Trustee will want ALL of your savings. You only get the exemption amounts. In your position it is better to just have the foreclosures. Save the BK in case the banks file for a deficiency judgment.

So if I go ahead with these foreclosures, and they come back on me for deficiency judgment and then I go ahead and do the BK, won't they still take my savings?

So if I go ahead with these foreclosures, and they come back on me for deficiency judgment and then I go ahead and do the BK, won't they still take my savings?

Yep. You can't be insolvent with 50K in savings.

Can you tell me what is the benefit to go ahead with a foreclosure first and then the BK? Is the benefit to do the foreclosure in hopes that they won't come back on me for a judgment? Thanks for your advice.

Would it be of more benefit to do a short sale?

one idea is to put some in a ira.

There really is no benefit to you to do a short sale - a short sale on your record is the same as a foreclosure. (On your credit record). The only reason to wait to do the BK is that the bank or mortgage insurance company may not come after you for a deficiency judgement so then you would not have to worry about losing your savings. If they do come after you, then you would want to file BK, IMO. The only reason not to file BK is to try to save the $50k.