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Can a bankruptcy trustee force a person to sell a property that is held jointly by 2 people when only 1 files chapter 7?

Milaca, MN |
Filed under: Chapter 7 bankruptcy

It is a house in Manzanillo,Mexico which is held in trust by a Mexican bank. We bought this as partrners in 2006.

Attorney Answers 6

  1. Generally, yes. Trustee's frequently force the sale of property owned jointly by a debtor and others. They will usually offer to sell the debtor's interest to the other partners/owners first, before forcing the sale.

  2. The trustee has power to order the sale of any non-exempt asset wherever located. Of course, the trustee can only compel your interest sold. Typically, the trustee will offer to sell your share to your partner first.

  3. Yes they do have the power to sell jointly owned property

    Matthew Johnson phone# 206.747.0313 is licensed in the State of Washington and performs bankruptcy, short sale negotiations, and estate planning in Whatcom, Skagit, Snohomish, King and Pierce counties. The response does not constitute specific legal advice, which would require a full inquiry by the attorney into the complete background of the facts and circumstances surrounding this matter; rather, it is intended to be general legal information based on the limited information provided by the inquirer; it This response also does not constitute the establishment of an attorney-client relationship, which can only be established after a conflict of interest evaluation is completed, your case is accepted, and a fee agreement is signed. Johnson Legal Group, PLLC

  4. Short answer, yes. Happens all the time. Probably will offer to sell the bk estate's interest to the joint owners.

    DISCLAIMER: This message is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this message. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area. I am a Federally Designated Debt Relief Agency under the United States Bankruptcy Code. I proudly help people in financial need file bankruptcy cases. IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).

  5. Yes. See 11 U.S.C. § 363, particularly subsection (h). Sometimes people forget how much power trustees in bankruptcy have.

  6. Yes. They often give the joint tenant the right of first refusal to buy out your interest and somewhat of a discounted rate to to account for liquidation fees. Keep in mind that the Bankruptcy Court must approve the 363 sale and that there are factors that may inhibit the trustee from getting such a sale approved.

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