Status of Co-Owned Homes in Bankruptcy

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Status of Co-Owned Homes in Bankruptcy

There is some shared inheritance by siblings who have equal rights on that property. While the land can be measured and equally divided, the inheritance of the house offers no such luck. It cannot be divided, albeit it can be sold, and the money can be equally shared. Some people are emotionally close to their inherited house and stay in them, while other siblings may move on. What happens when the other sibling files a chapter 7 bankruptcy case? For consultation do log in to Recovery Law Group.

The property comes under scrutiny and needs to be sold to pay off the loans. What is there for the co-owner at this stage? There are few options that the co-owner can employ, that can save their right on the inherited home.

  1. The other owner can buy a shared part of the home and be the sole owner of the house. The money can be used by the trustee to clear the debts off.
  2. The trustee can sell the house and distribute an equal amount to the co-owner. The amount extracted from the applicant’s side can be used to settle the loans.
  3. If the co-owner wants to retain the house, then they can arrange for a loan to keep the house.

Can the trustee sell a co-owned house?

A trustee is a body appointed by the Los Angeles court to evaluate the applicant’s assets. If the applicant is not using the house it becomes all the more necessary for the trustee to put it on sale. Even if the applicant is living in the house, and the house is worth, the trustee may propose to sell. The trustee can take charge to sell the co-owned house because-

  • The house is not a land that can be equally divided. Selling half part of the house could fulfill no use for the buyer. Hence, the trustee needs to sell the co-owned house.
  • Selling a complete package, e. the whole house will bring more dollars, which the trustee can employ to wipe off the loan of the applicant.
  • The benefit that the applicant will get by selling the house outweighs the interest of the other owner. Hence the court is unlikely to address the co-owner’s
  • Since the house is generating no-other revenue, it practically has no value other than offering shelter; which could be alternated by a rented or another alternative.

The applicant gets the benefit of exemption for some assets by the court. They can keep the assets they chose to retain. However unused and worthy properties are seldom exempted. For more tips call on 888-297-6203.