How does one of the owners filing bankruptcy affect the other individual regarding the home? 12 Answers as of October 26, 2016

Home is paid off and owned by 2 unrelated individuals, both on the deed. One has claimed bankruptcy.

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OlsenDaines | Rex Daines
If there is equity above the allowed homestead exemption for the person who filed the bankruptcy, then the court-appointed trustee can sell the home and pay the other owner his 50% share (or whatever his share is).
Answer Applies to: Oregon
Replied: 10/26/2016
Ronald K. Nims LLC | Ronald K. Nims
When one co-owner files Chapter 7, the trustee may seek a court order to sell the property and split the proceeds. If a co-owner files Chapter 13, there will be likely be no effect on the property.
Answer Applies to: Ohio
Replied: 10/17/2016
Goldsmith & Guymon
Goldsmith & Guymon | Marjorie Guymon
The owners would have a 50% interest in the property. The debtor only owns his or her 50%. As such, only that portion or ownership interest comes into the bankruptcy estate. If the debtor lives in the home then the debtor is able to claim a homestead exemption.
Answer Applies to: Nevada
Replied: 10/17/2016
A Fresh Start
A Fresh Start | Dorothy G Bunce
Talk about a vague question! To give you any sort of meaningful answer, I would need to go through a lengthy sequence of questions, including 1) does the person filing bankruptcy LIVE in the house? 2) what is the total value of the house? 3) what chapter of bankruptcy is being filed? You may want to consult a local bankruptcy attorney. Expect to pay a modest consultation fee for this valuable advice.
Answer Applies to: Nevada
Replied: 10/17/2016
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
The non-filing party will be given the opportunity to buy out the bankruptcy trustee's interest IF the party who filed for bankruptcy cannot claim an "exemption" on his or her share. So it will depend quite a bit on who lives in it. It also depends on how the title is held on the deed. You need to consult with local counsel. Bring a copy of the deed with you to the appointment.
Answer Applies to: California
Replied: 10/17/2016
    GARCIA & GONZALES, P.C.
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    You are missing too much information to hazard an answer. You should pay an experienced BK lawyer for one hour of their time to explain your rights to you. You have too much to lose.
    Answer Applies to: Colorado
    Replied: 10/17/2016
    Patrick W. Currin, Attorney at Law | Patrick Currin
    It would only affect the home if it was not excluded from the case. If it is to become part of the bankruptcy estate half of the value might have to be forfeited.
    Answer Applies to: California
    Replied: 10/17/2016
    Michelotti & Associates, Ltd. | Joseph Michelotti
    Not good. The trustee can force the sale of the house.
    Answer Applies to: Illinois
    Replied: 10/17/2016
    Stephens Gourley & Bywater | David A. Stephens
    It may affect the home of the owner who filed bankruptcy does not have an exemption claim to the home.
    Answer Applies to: Nevada
    Replied: 10/17/2016
    Garner Law Office
    Garner Law Office | Daniel Garner
    Typically the deed would be held as tenants in common, which means that the bankruptcy trustee could force a sale or the non-filing owner would have to buy the other out. This would depend upon the homestead exemptions applicable in your state. Consultation with a bankruptcy attorney would be time and money well spent.
    Answer Applies to: Oregon
    Replied: 10/17/2016
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    The most important question is whether the two owners each own 50% of the equity. The next question is whether the owner who files BR has more or less equity than the exempt amount. In Wisconsin, you can choose the Wisconsin list of exemptions, in which you can exempt $75,000, or the federal list in which you can exempt a bit under $23,000, but if you have unused exemption dollars, you can apply them to any other property up to a certain maximum. It's really best to find a skilled bankruptcy lawyer; it's almost always worth the investment.
    Answer Applies to: Wisconsin
    Replied: 10/13/2016
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