How is Real Estate Investment Treated in Bankruptcy?

NADER & BERNEMAN NADER & BERNEMAN EXPLAINS HOW IS REAL ESTATE INVESTMENT TREATED WHEN YOU FILE FOR BANKRUPTCY Real estate investment is basically any property that you don't personally live or use. But bad times can knock at anyone's door at anytime. Staying informed beforehand is always good. Let's see how your investment property will be treated depending on the type of bankruptcy you are filing. СНAРТER 7 THE STRAIGHT FORWARD BANKRUPTCY Under Chapter 7 bankruptcy, the bankruptcy trustee mostly cancels your debts if not all. This means all of your assets and property will be liquidated to repay the creditors. This is why it is also referred to as "liquidation" bankruptcy and not even a homestead exemption can protect any of the investment real estates. You are subject to loose your investment or rental property under Chapter 7 bankruptcy proceedings. CHAPTER 13 THE REORGANIZATION BANKRUPTCY With Chapter 13 bankruptcy, you are able to keep your property which holds true for personal as well as investment property. It lets you reorganize and re-structure your debt to eventually pay it all off. You need to make some arrangements to repay a major portion of your debt over a period agreed upon during the proceeding. The only condition is that the income from your real estate investment may increase the monthly payment which you are required to pay to the bankruptcy trustee. VISIT WWW.NADERLAWFIRM.COM TO KNOW MORE DETAILS