I own a primary residence in Massachusetts and a rental property in Maine. The primary residence home 10k underwater and has one mortgage only. The rental property is owned as joint tenants with my father and has 30k in equity in it. Is it possible to surrender my primary residential home and keep my rental property in a chapter 7?
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If you cannot exempt the equity in the "rental" and you file a Chapter 7, the Trustee will sell the property, split the net proceeds with the co-owner and use the balance to pay creditors. Further, in general you cannot collect rents once the bk is filed. If you (or the co-owner) does, you need to turn the $$ over to the Trustee.
If you do not want a Trustee to meddle in your affairs as it relates to your non-exempt property, do not file a Chapter 7
As it relates to your residence, yes you can surrender it in any bk.
You really need to discuss your options with an attorney.
Des.
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