Legal Question in Bankruptcy in Florida

I have $134k in outstanding credit cards and am considering filing for a chapter 7 per my lawyer. I have a primary house and rental property and have never made late payments on the mortgage. I only owe 85K on the investmant mortgage. With the current economic housing market, I still have equity, it can probably be sold for at least $150K. Can a create a reaffirmation agreement to continue paying the rental home. My lawyer does not believe the courts will consider it. Especially since, we owe $55k in credit cards to the same lender that holds the mortgage. I live in Florida, so my primary home is protected. What do you think? Should I just surrender the house?


Asked on 10/12/09, 6:20 pm

1 Answer from Attorneys
Brent Rose The Orsini & Rose Law Firm

You're not very clear in your post on differentiating between the homestead and the rental property, but I think you are saying that you are filing chapter 7 and you have equity in rental property. Generally speaking, rental property is not exempt, and it cannot be saved from seizure by the trustee with a reaffirmation agreement. In other words, you'll lose the rental property if it has equity if you file chapter 7. But why are you asking us and not your lawyer?

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Answered on 10/13/09, 10:17 am


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