Asked in Bankruptcy Law
Is it possible to own 2 homes and still file BK if one of the homes is a rental to your parents and you do not receive profit and have no equity at the moment?
Yes you can file. EVERYTHING you own and EVERYTHING you owe is included in the BK and must be reported. They are given different classes, some debts can't be discharged and some assets cannot be taken, and the assets are used to pay the liabilities. YOU CANNOT PICK AND CHOSE WHAT IS INVOLVED. First, how current you are on the mortgage(s) will be important. You would have to convince any and all cfreditors there is no equity to be provided by forcing the sale of the house(s). And both would have to have their rental income abilities qualified. If your renting the property to your parents at less than the market would pay.....hence basically expecting your creditors to pay their rent rather than receive the additional that should have been paid and available for the debt you aren't paying...thats not going to fly.