How will the out of state property be affect by a bankruptcy?

The answer to this question depends on what chapter of bankruptcy you file under, what state you live in, and other facts in your case. Under a chapter 7, you will have to exempt your property in order to keep it. Some states have a wild card exemption which allows you to exempt anything under a certain dollar amount. If the equity in your investment property is less than or equal to the wild card exemption amount, you will be able to keep it. In a chapter 13, you may be allowed to keep the investment property as long as the income you receive from it is minimal. But all of this depends on the actual facts of your case. If, for instance, your equity in the property is above the exemption amount, and the amount you would pay into a chapter 13 is less than your non-exempt equity, you will not be eligible for a chapter 13 at all. You should consult with a local bankruptcy attorney before making any decision.

It will become property of the bankruptcy estate. The assigned Chapter 7 Trustee (if that's what you file) will look to see if he or she can liquidate the property to pay your creditors. If I were you, I would pay an experienced BK lawyer to explore your options with you. You will have to pay for one or two hours of advice, but an mistakes here can be very costly!! Good luck.

The bankruptcy court has jurisdiction over all your property, anywhere on earth. So your out-of-state property (which must be disclosed on the bankruptcy papers) becomes part of the bankruptcy estate, except to the extent you can exempt it. Consult an experienced BR lawyer in your area.

If you have equity in the property, it will probably be sold and the proceeds paid to the trustee. Any funds left after the trustee's fee will be paid to your creditors.

The investment property will appear to the bankruptcy trustee as an asset available for liquidation on behalf of your creditors. Generally there are no exemptions available for investment property, so unless it is mortgaged so heavily that there is no equity in the property, you would have to surrender it or agree to pay the trustee for the equity all at once in a chapter 7 or over time through chapter 13 plan payments. Since bankruptcy is governed by federal law, the trustee could seize any property inside the United States.

Unless there is some way to find it as exempt, or unless there is no equity to be realized from selling it, the bankruptcy trustee will sell the property and take the income that the property produces until it is sold.

As part of your estate like any other property.

It will be treated the same as any other property.