Can you file bankruptcy on an investment property?

Debtors facing default on their investment real estate mortgages or seeking to reduce the amount of their loan payments on investment property have the option of filing for Chapter 7 or 13 bankruptcy.  The court may ask your lender to lower the balance on the mortgage to the present market value.  This will enable you to make a substantially lower monthly payment and to keep your investment property.  Once the adjusted repayment plan kicks in, you will be required to keep up with the payments or risk losing the protection of the bankruptcy court.  Where commercial property is concerned, if the mortgage payments are not current, and the creditor forecloses on it, the court may enter a deficiency judgment against you following the foreclosure sale.