I have my primary residence which has slight negative equity so its most likely exempt in ch 7. I also own a 2nd home in NJ which is currently rented but also negative on the equity side. I dont mkae those mortgage payments but the loan is under my name. both mortgages are on time every month..ive read in various places that a 2nd home is not exempt. if the 2nd house wont sell for what is owed on it, will the courts uphold this? or is there an exemption amount on that house as well?
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Filed Ch 7 9/28/09
341 Meeting 10/22/09 (Went well)
Discharged 12/22/2009! 
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There is no exemption for 2nd homes. However, if there is no equity, then the home has ZERO value for the Bankruptcy.
The issue will be the rental income...but that is normally off set by the mortgage. Where you can run into problems with investment properties is if the rent does not cover ALL the expenses with the home. BK courts will often disallow those expenses, or more accurately, will not allow the debtor to use personal income to make-up the difference at the expense of your unsecured creditors.
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