Q: In a Chap 13 for TN when losing a rental property I own, do I only lose the house or can the bank claim full value?
I own home that turned into a rental 3 years ago but reside in CA. Need to understand TN rules for what the bank can do when the Chap 13 is filed. I heard some states the bank can request the full value of the home in the filings.
A:
When you file a Chapter 13 bankruptcy, you get to keep your assets and pay your debts to the best of your ability. Bankruptcy exemptions shelter the value of much of your property, but your creditors have the right to get paid the value of your non-exempt property.
There are complex rules about which exemptions apply in your case. Based on how long you've lived in California, either CA, TN, or federal exemptions may apply. Then there's the question of extraterritoriality. If CA laws apply, do the cover property in TN?
You need to run this by a lawyer in California as there isn't enough information in the question to give a full and complete answer, and the question itself is beyond the scope of an internet question and answer board. There's too much at stake regarding your TN property to rely on some random lawyer online who you haven't vetted and hired. Ch. 13 shouldn't really be filed without a lawyer anyway, there are just too many things that can go sideways.
A: If you’re filing a Chapter 13, you get to keep all your property, including the rental. You have to repay what is owed to the bank but nothing more.
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