Brother's bankruptcy / debt. Share house mortgage.

This is a situation in which you really need to be face to face with a qualified bankruptcy attorney in your area. Yes, the trustee may have a right to liquidate this asset, but there may be opportunities to work something out. If there is not a way to work something out, then you may be entitled to some cash out of the property since you reside there. An attorney would need to review documents, ask questions, look at property values and loan balances, and otherwise evaluate the situation with you in a way that cannot be done within the scope of an internet question and answer.

They facts that you've shared point to the conclusion that your brother's interest will be examined by his bankruptcy trustee. If his interest in the property represents some amount of non-exempt equity then the trustee will be interested in recovering that amount or some portion of that amount to distribute to your brother's creditors. Given the current down market in real estate however, these situations generally do not pan out for the trustee so you may have some leverage to get out from under this claim. But all of that is speculation until I hear the details. If interested call our office to discuss: we are located in Bolingbrook and practice before the Bankruptcy Court in Joliet all the time.