Last week my tenant filed for Chapter 13 bankruptcy, the writ was rescinded and he was granted a stay.

I was also able to show her that if we busted on our investment properties that it would not affect our current living situation or life style, we wold not have to file bankruptcy, we would not be down and out. 

So if something in their lives forced their hand (death, divorce, bankruptcy, etc) to unload the units at a deep discount it could in turn tank the value of the one unit that I was going to own. 

The way I see it he only has two options - pay all the back money owed, or file for bankruptcy.

The also have low minimums and superior bankruptcy protection.

I worked on the bankruptcy case of a person who was featured on an Amercian Greed episode.

She mentioned declaring bankruptcy to stop the foreclosure but I know I read (here I think)  that while it would do that, it will cause other issues.

It could be anything from a previous owner who is protesting through bankruptcy to a fence that was built on the lot line. 

My thinking is that if I file a judgment now they'll file bankruptcy.  

Pay off the loans and tell the part of you that wants to do the next deal that when you hit the inevitable bump in the road, that all investors hit, you will not only lose your properties you will also lose your personal home as well and end up declaring bankruptcy.