Expert Advice When You Need It Most
If two unmarried people own a home togather (no mortage) & one person files for bankruptcy (7 or 13), what happens to the house?Home was inherited jointly; fully paid for. Both owners live there (duplex). One owner (A) - financial stable; other owner (B) - overwhelmed in debt. Since home value is beyond exemption limit, would it be sold off for the bankruptcy? But owner A is not co-owner to any of owner B's debt and the to force a sale of home deprieves owner A of their home. Attorney answers (2)
Unfortunately, that is the likely result with you receiving your share of the proceeds.
If you are able to buy out the co-owner's interest, that should be evaluated. Alternatively, you may be able to make an offer to the trustee to buy the bankruptcy estate's interest in the property. If the trustee can sell the interest to you without having to pay real estate commission and perhaps save other closing costs, at the same time keeping trustee time down, it would benefit the bankruptcy estate. You should take any necessary steps to be in a position to make an offer. If the home is owned outright, the outlook for financing should be decent. The scope of this space does not allow sufficient review and consultation. I suggest you arrange to be represented.
Add comment
Reputation Level 12
Answered over 2 years ago.
Bankruptcy Attorney in Lockport, IL.
Your question is what happens to a house that is 1/2 owned by a bankruptcy debtor. The short answer is that in certain types of bankruptcy it is not necessary to give up your interest in real estate. Otherwise, try a non-bankruptcy option such as credit counseling.
To clarify, Chapter 13 bankruptcy does not require the surrender of assets. This may be one way to solve the debtor's problems. Another option would be to work with a private company or even a semi-public agency to negotiate debts. I am a principal in a debt-negotiation firm called Credit Relief Center (CRC). CRC may be able to help as well. Feel free to contact my office to follow up. I hope this information has been helpful. Related Questions1 Attorney answers: 
Asked by a user in Mayville, MI - over 2 years ago. 1 Attorney answers: 
Asked by a user in Kansas City, KS - over 3 years ago. 2 Attorney answers: 
Asked by a user in Oklahoma City, OK - over 1 year ago. This Week's Top Bankruptcy ContributorsView all lawyers on the Bankruptcy LeaderboardFind Bankruptcy Lawyers |
