SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                   FORM 10-Q
(Mark One)
  X  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
-----
     EXCHANGE ACT OF 1934.

For the quarterly period ended September 30, 1999
                               ------------------
                                      OR
     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
-----
     EXCHANGE ACT OF 1934.

For the transition period from              to
                               ------------    ------------
Commission file number 0-14332
                       -------

                        BALCOR PENSION INVESTORS-VI
          -------------------------------------------------------
          (Exact name of registrant as specified in its charter)

          Illinois                                      36-3319330
-------------------------------                     -------------------
(State or other jurisdiction of                      (I.R.S. Employer
incorporation or organization)                      Identification No.)

2355 Waukegan Road, Suite A200
Bannockburn, Illinois                                     60015
----------------------------------------            -------------------
(Address of principal executive offices)                (Zip Code)

Registrant's telephone number, including area code (847) 267-1600
                                                    -------------
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes   X    No
    -----     -----

                          BALCOR PENSION INVESTORS-VI
                       (An Illinois Limited Partnership)

                                BALANCE SHEETS
                   September 30, 1999 and December 31, 1998
                                  (Unaudited)

                                    ASSETS

                                                 1999            1998
                                             -------------   -------------
Cash and cash equivalents                  $    3,267,777  $    3,392,806
Escrow deposits - restricted                      235,000         235,000
Accrued interest receivable                        14,935          10,380
                                             -------------   -------------
                                           $    3,517,712  $    3,638,186
                                             =============   =============

                       LIABILITIES AND PARTNERS' CAPITAL

Accounts payable                           $       36,697  $       50,187
Due to affiliates                                 103,194          88,560
                                             -------------   -------------
    Total liabilities                             139,891         138,747
                                             -------------   -------------

Commitments and contingencies

Limited Partners' capital (1,382,562
  Interests issued and outstanding)             3,889,581       4,011,199
General Partner's deficit                        (511,760)       (511,760)
                                             -------------   -------------
    Total partners' capital                     3,377,821       3,499,439
                                             -------------   -------------
                                           $    3,517,712  $    3,638,186
                                             =============   =============

The accompanying notes are an integral part of the financial statements.

                          BALCOR PENSION INVESTORS-VI
                       (An Illinois Limited Partnership)

                       STATEMENTS OF INCOME AND EXPENSES
             for the nine months ended September 30, 1999 and 1998
                                  (Unaudited)


                                                 1999            1998
                                             -------------   -------------
Income:
  Interest on short-term investments       $      123,623  $      175,359
  Other income                                     23,573          28,375
                                             -------------   -------------
      Total income                                147,196         203,734
                                             -------------   -------------
Expenses:
  Loss from operations of real
    estate held for sale                                            5,028
  Other expenses                                                   78,437
  Administrative                                  268,814         425,239
                                             -------------   -------------
      Total expenses                              268,814         508,704
                                             -------------   -------------
Net loss                                   $     (121,618) $     (304,970)
                                             =============   =============
Net loss allocated to General Partner                None            None
                                             =============   =============
Net loss allocated to Limited Partners     $     (121,618) $     (304,970)
                                             =============   =============
Net loss per Limited Partnership Interest
  (1,382,562 issued and outstanding)
  - Basic and Diluted                      $        (0.09) $        (0.22)
                                             =============   =============
Distribution to Limited Partners                     None  $    1,935,587
                                             =============   =============
Distribution per Limited Partnership
  Interest                                           None  $         1.40
                                             =============   =============

The accompanying notes are an integral part of the financial statements.

                          BALCOR PENSION INVESTORS-VI
                       (An Illinois Limited Partnership)

                       STATEMENTS OF INCOME AND EXPENSES
              for the quarters ended September 30, 1999 and 1998
                                  (Unaudited)


                                                 1999            1998
                                             -------------   -------------
Income:
  Interest on short-term investments       $       40,315  $       51,153
  Other income                                     23,573          28,375
                                             -------------   -------------
      Total income                                 63,888          79,528
                                             -------------   -------------
Expenses:
  Administrative                                   71,653         102,203
                                             -------------   -------------
      Total expenses                               71,653         102,203
                                             -------------   -------------
Net loss                                   $       (7,765) $      (22,675)
                                             =============   =============
Net loss allocated to General Partner                None            None
                                             =============   =============
Net loss allocated to Limited Partners     $       (7,765) $      (22,675)
                                             =============   =============
Net loss per Limited Partnership Interest
  (1,382,562 issued and outstanding)
  - Basic and Diluted                      $       (0.006) $        (0.02)
                                             =============   =============

The accompanying notes are an integral part of the financial statements.

                          BALCOR PENSION INVESTORS-VI
                       (An Illinois Limited Partnership)

                           STATEMENTS OF CASH FLOWS
             for the nine months ended September 30, 1999 and 1998
                                  (Unaudited)


                                                 1999            1998
                                             -------------   -------------
Operating activities:
  Net loss                                 $     (121,618) $     (304,970)
  Adjustments to reconcile net loss
   to net cash (used in) or provided by
    operating activities:
      Net change in:
        Accounts and accrued interest
          receivable                               (4,555)        299,849
        Accounts payable                          (13,490)        (26,263)
        Due to affiliates                          14,634          42,460
                                             -------------   -------------
  Net cash (used in) or provided by
    operating activities                         (125,029)         11,076
                                             -------------   -------------
Investing activity:
  Release of escrow deposits - restricted                          75,000
                                                             -------------
  Cash provided by investing activity                              75,000
                                                             -------------
Financing activity:
  Distribution to Limited Partners                             (1,935,587)
                                                             -------------
  Cash used in financing activity                              (1,935,587)
                                                             -------------
Net change in cash and cash equivalents          (125,029)     (1,849,511)
Cash and cash equivalents at beginning
  of period                                     3,392,806       5,290,460
                                             -------------   -------------
Cash and cash equivalents at end of
  period                                   $    3,267,777  $    3,440,949
                                             =============   =============

The accompanying notes are an integral part of the financial statements.

                          BALCOR PENSION INVESTORS-VI
                       (An Illinois Limited Partnership)

                         NOTES TO FINANCIAL STATEMENTS

1. Accounting Policy:

In the opinion of management, all adjustments necessary for a fair presentation
have been made to the accompanying statements for the nine months and quarter
ended September 30, 1999, and all such adjustments are of a normal and
recurring nature.

2. Partnership Termination:

The partnership agreement provides for the dissolution of the Partnership upon
the occurrence of certain events. The Partnership sold its final real estate
investment in August 1997. The Partnership has retained a portion of the cash
from property sales to satisfy obligations of the Partnership as well as to
establish a reserve for contingencies. As previously reported, the Sandra Dee
case was dismissed by the Illinois Supreme Court in April 1999. The Madison
Partnership litigation was filed in May 1999. The second Sandra Dee case was
filed June 1, 1999 and served on August 16, 1999. See Note 5 of Notes to
Financial Statements for additional information regarding the Madison
Partnership/Dee litigation. Despite the existence of the Madison
Partnership/Dee litigation, the Partnership currently plans to dissolve in
December 1999 and distribute remaining cash reserves (including amounts in the
Early Investment Incentive Fund) to the partners in accordance with the
partnership agreement. In the event that a new contingency (such as a lawsuit)
arises during 1999, the Partnership may not be dissolved and may continue in
existence until such new contingency is resolved. The Partnership does not
consider the Madison Partnership/Dee case to be a matter that would preclude
the dissolution of the Partnership in 1999.

3. Transactions with Affiliates:

Fees and expenses paid and payable by the Partnership to affiliates during the
nine months and quarter ended September 30, 1999 are:

                                             Paid
                                    -----------------------
                                     Nine Months   Quarter   Payable
                                    ------------- --------- ---------
     Reimbursement of expenses to
       the General Partner, at cost     $ 22,318   $ 3,649 $ 103,194

4. Other Income:

The Sand Pebble Village Apartments - Phase II, which was owned by a joint
venture consisting of the Partnership and an affiliate, was sold during a prior
year. During September 1999, the Partnership received $23,573 representing its
share of a utility deposit refund related to the property. This amount has been
recognized as other income for financial statement purposes.

5. Contingency:

In May 1999, a lawsuit was filed against the Partnership, Madison Partnership
Liquidity Investors XX, et al. vs. The Balcor Company, et al. whereby the
Partnership and certain affiliates have been named as defendants. The
plaintiffs are entities that initiated tender offers to purchase and, in fact,
purchased units in eleven affiliated partnerships. The complaint alleges breach
of fiduciary duties and breach of contract under the partnership agreement and
seeks the winding up of the affairs of the Partnership, the establishment of a
liquidating trust, the appointment of an independent trustee for the trust and
the distribution of a portion of the cash reserves to limited partners. On June
1, 1999, a second lawsuit was filed and was served on August 16, 1999, Sandra
Dee vs. The Balcor Company, et al. The Dee complaint is virtually identical to
the Madison Partnership complaint and on September 20, 1999 was consolidated
into the Madison Partnership case. The defendants intend to vigorously contest
these actions. The Partnership believes that it has meritorious defenses to
contest the claims. It is not determinable at this time how the outcome of
these actions will impact the remaining cash reserves of the Partnership.

                          BALCOR PENSION INVESTORS-VI
                       (An Illinois Limited Partnership)

                     MANAGEMENT'S DISCUSSION AND ANALYSIS

Balcor Pension Investors - VI (the "Partnership") is a limited partnership
formed in 1984 to invest in first mortgage loans and, to a lesser extent,
wrap-around loans and junior mortgage loans. The Partnership raised
$345,640,500 through the sale of Limited Partnership Interests and utilized
these proceeds to fund thirty-one loans, and subsequently acquired thirteen
properties and three investments in joint ventures-affiliates through
foreclosure. As of September 30, 1999, the Partnership has no loans or real
estate in its portfolio.

Inasmuch as the management's discussion and analysis below relates primarily to
the time period since the end of the last fiscal year, investors are encouraged
to review the financial statements and the management's discussion and analysis
contained in the annual report for 1998 for a more complete understanding of
the Partnership's financial position.

Operations
----------

Summary of Operations
---------------------

The operations of the Partnership in 1999 and 1998 consisted primarily of
administrative expenses which were partially offset by interest income earned
on short-term investments. In addition, the Partnership made a payment to the
purchaser of the Hammond Aire Shopping Center in the first quarter of 1998
pursuant to the sale agreement. Primarily as a result of lower administrative
expenses in 1999, the Partnership's net loss decreased during the nine months
and quarter ended September 30, 1999 as compared to the same periods in 1998.
Further discussion of the Partnership's operations is summarized below.

1999 Compared to 1998
---------------------

Unless otherwise noted, discussions of fluctuations between 1999 and 1998 refer
to the nine months and quarters ended September 30, 1999 and 1998.

As a result of lower interest rates and lower average cash balances due to the
distribution to Limited Partners in April 1998 from the release of holdbacks
and escrows on several of the Partnership's sold properties, interest income on
short-term investments decreased during 1999 when compared to 1998.

The Sand Pebble Village Apartments - Phase II, which was owned by a joint
venture consisting of the Partnership and an affiliate, was sold during a prior
year. During September 1999, the Partnership received $23,573 representing its
share of a utility deposit refund related to the property. The Perimeter 400
Office Building, which was owned by a joint venture consisting of the
Partnership and three affiliates, was sold in December 1996. During October
1998, the Partnership received $28,375 representing its share of a refund of
1996 real estate taxes which had been under appeal. These amounts have been
recognized as other income for financial statement purposes.

During 1998, the Partnership paid additional expenditures related to one of the
properties sold in 1997. As a result, the Partnership recognized a loss from
operations of real estate held for sale during 1998.

During the first quarter of 1998, the Partnership paid $78,437 in settlement of
claims presented by the purchaser of the Hammond Aire Plaza Shopping Center for
certain tenant improvements, leasing, survey and escrow costs pursuant to the
sale agreement. The property was sold in 1997. This amount was recognized as
other expense for financial statement purposes during 1998.

Primarily due to a decrease in accounting, portfolio management and investor
processing fees, administrative expenses decreased during 1999 when compared to
1998.

Liquidity and Capital Resources
-------------------------------
The cash position of the Partnership decreased by approximately $125,000 as of
September 30, 1999 when compared to December 31, 1998 due to cash used in
operating activities for the payment of administrative expenses, which was
partially offset by interest income earned on short-term investments and its
share of the receipt of a utility deposit refund on Sand Pebble Village
Apartments - Phase II.

The partnership agreement provides for the dissolution of the Partnership upon
the occurrence of certain events. The Partnership sold its final real estate
investment in August 1997. The Partnership has retained a portion of the cash
from property sales to satisfy obligations of the Partnership as well as to
establish a reserve for contingencies. As previously reported, the Sandra Dee
case was dismissed by the Illinois Supreme Court in April 1999. The Madison
Partnership and the new Sandra Dee litigation, described in Part II, Item 1, of
this report, were filed in May 1999 and June 1999, respectively. Despite the
existence of the Madison Partnership/Dee litigation, the Partnership currently
plans to dissolve in December 1999 and distribute remaining cash reserves
(including amounts in the Early Investment Incentive Fund) to the partners in
accordance with the partnership agreement. In the event that a new contingency
(such as a lawsuit) arises during 1999, the Partnership may not be dissolved
and may continue in existence until such new contingency is resolved. The
Partnership does not consider the Madison Partnership/Dee case to be a matter
that would preclude the dissolution of the Partnership in 1999.  As a result of
the pending dissolution of the Partnership, the general partner has suspended
transfer of limited partnership interests in the Partnership. Certain transfers
which are not for value (such as death, divorce, change of custodian or other
estate planning) will continue to be permitted. In the event that dissolution
of the Partnership does not occur during 1999, the Partnership will allow
transfers of limited partnership interests to occur commencing in January 2000.

Limited Partners have received cash distributions totaling $320.76 per $250
Interest. Of this amount, $142.21 represents Cash Flow from operations and
$178.55 represents a return of Original Capital. No additional distributions
are anticipated to be made prior to the termination of the Partnership.
However, after paying final partnership expenses, any remaining cash reserves
will be distributed. Amounts allocated to the Early Investment Incentive Fund
will also be distributed at that time.

Pursuant to the sale agreement for the Hammond Aire Plaza Shopping Center,
$310,000 of the sale proceeds was placed in escrow at closing. In 1998, $50,000
of the escrow was disbursed to the Partnership and $25,000 was disbursed to the

purchaser. The remaining sale proceeds of $235,000 remains in escrow pending
resolution of certain tenant issues. The Partnership expects to receive in 1999
the sales proceeds remaining in the escrow.

In 1997, the Partnership discontinued the repurchase of Interests from Limited
Partners. As of September 30, 1999, there was cash of $5,461,510 in the Early
Investment Incentive Fund.

The Partnership sold all of its remaining real property investments and
distributed a majority of the proceeds from these sales to Limited Partners in
1996 and 1997. Since the Partnership no longer has any operating assets, the
number of computer systems and programs necessary to operate the Partnership
has been significantly reduced. The Partnership relies on third party vendors
to perform most of its functions and has implemented a plan to determine the
Year 2000 compliance status of these key vendors. The Partnership is within its
timeline for having these plans completed prior to the year 2000.

The Partnership's plan to determine the Year 2000 compliance status of its key
vendors has involved soliciting information from these vendors through the use
of surveys, follow-up discussions and review of data where needed.  The
Partnership has received the surveys from each of these vendors. While the
Partnership cannot guarantee Year 2000 compliance by its key vendors, and is
relying on statements from these vendors without independent verification,
these surveys, testing of systems, where applicable and discussions with the
key vendors performing services for the Partnership indicate that the key
vendors are substantially Year 2000 compliant as of September 30, 1999. The
Partnership will continue to monitor the Year 2000 compliance of its key
vendors during the fourth quarter of 1999. In addition, the Partnership has
developed a contingency plan in the event of non-compliance by these key
vendors in the Year 2000. The Partnership does not believe that failure by any
of its key vendors to be Year 2000 compliant by the year 2000 would have a
material effect on the business, financial position or results of operations of
the Partnership.

                          BALCOR PENSION INVESTORS-VI
                       (An Illinois Limited Partnership)

                          PART II - OTHER INFORMATION

Item 1. Legal Proceedings
------------------------

Madison Partnership Liquidity Investors XX, et al. vs. The Balcor Company, et
-----------------------------------------------------------------------------
al.
---

On May 7, 1999, a proposed class action complaint was filed, and on May 13,
1999 was served on the defendants, Madison Partnership Liquidity Investors XX,
et al. vs. The Balcor Company, et al. (Circuit Court, Chancery Division, Cook
County, Illinois, Docket No. 99CH 06972). The general partner of the
Partnership, the general partners of twenty-one additional limited partnerships
which were sponsored by The Balcor Company, The Balcor Company and one
individual are named as defendants in this action. The Partnership and the
twenty-one other limited partnerships are referred to herein as the "Affiliated
Partnerships". Plaintiffs are entities that initiated tender offers to purchase
units and, in fact, purchased units in eleven of the Affiliated Partnerships.
The complaint alleges breach of fiduciary duties and breach of contract under
the partnership agreements for each of the Affiliated Partnerships. The
complaint seeks the winding up of the affairs of the Affiliated Partnerships,
the establishment of a liquidating trust for each of the Affiliated
Partnerships until a resolution of all contingencies occurs, the appointment of
an independent trustee for each such liquidating trust and the distribution of
a portion of the cash reserves to limited partners. The complaint also seeks
compensatory damages, punitive and exemplary damages, and costs and expenses in
pursuing the litigation. On July 14, 1999, the defendants filed a Motion to
Dismiss the complaint. A hearing date on the motion has not yet been set. On
September 20, 1999 the Sandra Dee case described below was consolidated with
this case. Future reports to investors will report only the consolidated case.

The defendants intend to vigorously contest this action. No class has been
certified as of this date. The Partnership believes that it has meritorious
defenses to contest the claims. It is not determinable at this time how the
outcome of this action will impact the remaining cash reserves of the
Partnership.

Sandra Dee vs. The Balcor Company, et al.
-----------------------------------------

On June 1, 1999, a proposed class action complaint was filed, and on August 16,
1999 was served on the defendants, Sandra Dee vs. The Balcor Company, et al.
(Circuit Court, Chancery Division, Cook County, Illinois, Docket No. 99CH
08123). The general partner of the Partnership, the general partners of
twenty-one additional limited partnerships which were sponsored by The Balcor
Company, The Balcor Company and one individual are named as defendants in this
action. The Partnership and the twenty-one other limited partnerships are
referred to herein as the "Affiliated Partnerships". This complaint is
identical in all material respects to the Madison Partnership Liquidity
Investors XX, et al. vs. The Balcor Company et al. complaint filed in May 1999.
The complaint alleges breach of fiduciary duties and breach of contract under

the partnership agreements for each of the Affiliated Partnerships. The
complaint seeks the winding up of the affairs of the Affiliated Partnerships,
the establishment of a liquidating trust for each of the Affiliated
Partnerships until a resolution of all contingencies occurs, the appointment of
an independent trustee for each such liquidating trust and the distribution of
a portion of the cash reserves to limited partners. The complaint also seeks
compensatory damages, punitive and exemplary damages, and costs and expenses in
pursuing the litigation. The defendants filed on September 15, 1999 a motion to
consolidate this case with the Madison Partnership case. On September 20, 1999,
the motion was granted and this case was consolidated with the Madison
Partnership case. Future reports to investors will report only the consolidated
case.  On September 15, 1999, the defendants also filed a Motion to Dismiss the
complaint.

The defendants intend to vigorously contest this action. No class has been
certified as of this date. The defendants believe that they have meritorious
defenses to contest the claims. It is not determinable at this time how the
outcome of this action will impact the remaining cash reserves of the
Partnership.

Item 6.  Exhibits and Reports on Form 8-K
-----------------------------------------

(a) Exhibits:

(4) Form of Subscription Agreement previously filed as Exhibit 4.1 to Amendment
No. 1 to the Registrant's Registration Statement on Form S-11 dated January 14,
1985 (Registration No. 2-93840) and Form of Confirmation regarding Interests in
the Registrant set forth as Exhibit 4.2 to the Registrant's Report on Form 10-Q
for the quarter ended June 30, 1992 (Commission File No. 0-14332) are
incorporated herein by reference.


(27) Financial Data Schedule of the Registrant for the nine months ended
September 30, 1999 is attached hereto.

(b) Reports on Form 8-K:  No reports were filed on Form 8-K during the quarter
ended September 30, 1999.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


                              BALCOR PENSION INVESTORS-VI



                              By:  /s/Thomas E. Meador
                                   -----------------------------
                                   Thomas E. Meador
                                   President and Chief Executive Officer
                                  (Principal Executive Officer) of Balcor
                                   Mortgage Advisors-VI, the General Partner



                              By:  /s/Jayne A. Kosik
                                   -----------------------------
                                   Jayne A. Kosik
                                   Senior Managing Director and Chief Financial
                                   Officer (Principal Accounting and Financial
                                   Officer) of Balcor Mortgage Advisors-VI, the
                                   General Partner




Date: November 4, 1999
      ----------------