The filing means the BK trustee now controls all of the assets of the debtor.

Invest in stocks or bonds, pay off other debt or , heck, enjoy spending some of your money.  

For example, I am a little concerned about some aspects of the business cycle recovery and a potential for a double-dip so I lean toward the safest part of capital stack which is debt (or low-debt equity).

When you get out you work for a year with someone to get your master license and then you’re making $80,000 without any college debt.  Or

Any reduction in debt or cash received may be treated as taxable boot, resulting in potential tax liabilities.

Also an item to be very suspicious of right now: "Preferred Equity" Really, I think preferred equity is not represented accurately (it is not "safe" or protected really in any form) by many syndicators, and I own no second position debt or preferred equity personally.

Average well over 20% in IRR due to principal pay down.I don't carry the debt or the risk.

It also depends on things like if you're investing in debt or equity (for completely different answers...again more safety equals lower return and more risk equals more potential reward ).

Your sources is were you get your money from, ie debt or equity.

In your example you’d pay about $80k to sell your $800k property and buy a new one for $800k with either additional debt or cash.