Chapter 7 involves the trustee selling the debtor's nonexempt assets and using the proceeds from the sale to pay the creditors.What property is exempt is a matter of both state and/or federal law. This is because states are permitted under the Federal code to adapt thier own exemption laws in place of federal exemptions. In other states, the debtor has the choice of choosing between a federal exemption or a state's exemption.You should consult a lawyer in your state to determine if your rental is exempt under state law. Or, if you have a choice between state and federal, which is more beneficial for you.