Bankruptcy Question on Investment Property

[ToughLife]

I'm clear with credit card bills because of settlements I just did 4 months ago. The only loan I have under my name is for a home in Arizona and I'm receiving rent but not enough to cover the monthly expenses pertaining to the property. The AZ property is reported as investment in our taxes.

I currently live and work in California. My husband's name is on the California loan and we report this on our taxes as our main home. My husband has lots of credit card bills and unemployed but doesn't want to join me with bankruptcy. All his payments are updated and still have a good credit.

I want to declare Chapter 7 to get off from Arizona property.

Do I have to file in both states CA and AZ?
Is it okay to declare bankruptcy it alone without the husband?
Do I have to let the property manager know about my plan to return the property to the bank or say the bankruptcy?

Thank you!

[tcreegan]

Bankruptcy Question on Investment Property
I'm clear with credit card bills because of settlements I just did 4 months ago. The only loan I have under my name is for a home in Arizona and I'm receiving rent but not enough to cover the monthly expenses pertaining to the property. The AZ property is reported as investment in our taxes.

Current on cc debt, only loan is a house in AZ. Bankruptcy is a terrible way to handle this. Work with the lender, get them to accept a "deed in lieu of foreclosure" Basically, you sign the deed over to them and they take you off the mortgage. Or get them to agree to a short sale. (be sure to get a lawyer for all this)

I currently live and work in California. My husband's name is on the California loan and we report this on our taxes as our main home. My husband has lots of credit card bills and unemployed but doesn't want to join me with bankruptcy. All his payments are updated and still have a good credit.

You will file in California, not AZ You file where you live.

Why does hubby not want to be in on the bk? Unemployed with "lots of cc bills" does not sound promising. Is it worry about the house? Does he have other assets, cars, motocycles, stuff he doesn't want to lose?

I want to declare Chapter 7 to get off from Arizona property.

Not the best way to do this. Deed in lieu of foreclosure or a short sale would be better; plus you save the BK for when you really need it.

Do I have to file in both states CA and AZ?

No, file in the state where you live.

Is it okay to declare bankruptcy it alone without the husband?

Probably b/c you two have things in one name or the other but not both.
Even if both names are on accounts, you can still file w/o the spouse.
It's a little tricky, so an attorney is highly recommended.

Do I have to let the property manager know about my plan to return the property to the bank or say the bankruptcy?

First figure out if you are doing a deed-in-lieu, short sale, or bankruptcy. Then notify him and ask for help keeping an eye on it, report suspicious activity, water the plants/lawn, etc.

Hope this was helpful in some way,

Tom in Colo

[frogger]

Tom has given you some pretty good advice.

If that property is the only reason you're thinking about filing, perhaps you should just surrender possession to the lender. Return the keys, the lease, and have the tenants start paying them.

They will probably foreclose on you at some point, but really...

Who cares?