How is a home sold in a Partition sale if there are joint owners? 1 Answers as of July 11, 2011If jt owners own a home, and 1 jt owner files Ch7 & a partition sale will follow since there is equity in the home, should the other owners continue to pay the mortgage? What happens if a jt owner tries to frustrate the partition sale (i.e., destruction of property, discouraging potential buyers)? When does the debtor get discharged? How is the home sold - auction, regular and how long does a partition sale take?
Law Office of Maureen O' Malley | Maureen O'Malley
The owner who would destroy the house to stop a partition sale can be charged with a crime, at the very least. This possibility should be mentioned to your lawyer and/or the trustee. The remaining owners can buy out the debtor's portion and pay that to the trustee. If they don't have the money, the trustee would sell, probably at auction, and pay the others their portion of the profit. Even in an asset case, the debtor is discharged about 3 months after filing, even as the trustee is administering assets.
Answer Applies to: Virginia