Find the best financial services for you at: SMARTFINANCESOLUTIONS.NET - Should I file a Chapter 7 bankruptcy for discharge of investment property? - My wife and I have had an investment property since early 2008, which was being paid for and managed by the investment company we loaned our credit to (stated income loan). Since the housing market crash later that year, we are left holding the hot potato. This house also has a 2nd mortgage (HELOC), which was invested elsewhere by the investors of this company, that is lost as well. Both the 1st mortgage and HELOC are from the same creditor. We have been trying to short sale the home for two years now with no luck. We just received notification that BOA is now a debt collector and fear they are coming after my wages and/or the home I live in via a lien. I'm very seriously considering filing a chapter 7 because I don't want the property and I want to protect ourselves if they decide to come after us to pay the deficiency owed. Is this a good idea at this point since our credit is already shot? -