Will my sisters bankruptcy affect our family property? 5 Answers as of March 28, 2011My siblings and I own acres of land that we bought together. One of my siblings is filing bankruptcy. He was told that he would have to sell for at least 75% of the market value. Is this the whole acres or just his acres? Can we buy it from him for less? If so, what do we need to do? Also, will this affect our credit as well?
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
Typically, in a liquidation proceeding, the Bankruptcy Trustee will negotiate a buy-out with you for your sister's share of property. If that is unsuccessful, the Trustee will try to sell the asset just the same as your sister would be entitled to do by law by partition or otherwise.
Answer Applies to: Indiana
Ferguson & Ferguson | Randy W. Ferguson
You need to sit down with his attorney. The court will look to see if it was a fraudulent transfer. If you pay less, the bankruptcy trustee will have a problem with it. It should not have anything to do with your credit.
Answer Applies to: Alabama
Carballo Law Offices | Tony E. Carballo
The share of the property of the sibling filing bankruptcy will become property of the bankruptcy estate of the sibling who is filing for bankruptcy. You can purchase the share of the sibling filing bankruptcy from the bankruptcy trustee. The amount is negotiable. The trustee may obtain permission from the court to sell the entire property and then pay the other siblings their shares after the apportioned cost of the sale. It would be best to negotiate a deal with the trustee since the trustee will be interested in getting the money quickly. You can buy it from the sibling filing bankruptcy for a fair price and then the trustee can take the money unless the sibling filing for bankruptcy can exempt some or all of it. Your credit is not affected by your sibling's bankruptcy.
Answer Applies to: California