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

Asked over 1 year ago - Milaca, MN

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. Scott Benjamin Riddle

    Pro

    Contributor Level 20

    5

    Lawyers agree

    Answered . 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. Stuart Gregory Steingraber

    Contributor Level 18

    4

    Lawyers agree

    Answered . 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. Jeremy Judson Cobb

    Contributor Level 14

    2

    Lawyers agree

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

  4. Matthew Erik Johnson

    Contributor Level 17

    3

    Lawyers agree

    Answered . 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... more
  5. Derek R. Caldwell

    Pro

    Contributor Level 18

    2

    Lawyers agree

    Answered . 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... more
  6. Robert Michael Fox

    Contributor Level 10

    2

    Lawyers agree

    Answered . 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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