First, lets take a look at a Chapter 7 bankruptcy. When you file a Chapter 7 in Florida, there a federal and state exemptions that determine what you can keep, and what will become property of the bankruptcy estate and liquidated. This will vary from state to state. For example, in Florida, one gets an unlimited homestead exemption, whereas most states limit their homestead exemption; this refers to the amount of equity you can have in your home that is exempt from being able to be administered by the Trustee. Unfortunately, this does not apply to rental property. There may be some statutory exemptions that can cover some of the equity in the rental property to make it feasible for the debtor to keep the property. Of course, if there is no equity in the property, it would be highly unusual that the trustee would want the property. The trustee will only sell property if the trustee can obtain a net gain, thereby allowing for a distribution of funds to unsecured creditors.
Now lets look at a Chapter 13. Usually, its you can keep your property in a Chapter 13, including rental property. However, there are other considerations we must look at. For example, the property could be eligible for a cramdown. That is, the mortgage could be modified, bringing the balance owed down to the value of the property, and interest modified to be something above prime, with the acceptable interest rate often either determined by agreement of the parties, or determined by the Court. This could have the effect of lowering the monthly mortgage payment, which could have an impact on whether it is feasible to keep the property. One can do a cramdown on many types of secured property, including rental property, but not your homestead.