QUESTION
Can I file for bankrupcy if I co-own a house that my sister still lives in without losing the house?
Asked on Jun 13th, 2011 on Bankruptcy - Georgia
More details to this question:
My sister and I co-own a house that she lives in. She will not buy me out at a fair market price. If I file for bankruptcy what happens to the house, can she still live there?
9 ANSWERS
Bankruptcy Law Attorney serving Campbell, CA
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Ellahie Law Firm
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You can co-own but the issues is what is YOUR equity in the home and whether the amount of equity exceeds the exemption amount allowed under your State law. If it does , there is no issue but if there is equity the trustee can obtain by selling the house, paying your sister her 1/2 then the trustee can ask the court to make such an Order . Your sister has the right to oppose it and if she is able to convince the court that selling the entire home will be an undue hardship on her, she may prevail.
Answered on Jun 15th, 2011 at 7:37 AM
The answer is - it depends! It really depends on how much the home is worth, your interest in the home, liens mortgages and other encumbrances involved, if any, and what bankruptcy exemption is available to you where and when you file. The devil is in the details.
Answered on Jun 15th, 2011 at 6:53 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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There are several factors that come into play after a bankruptcy is filed to determine whether property is retained by the debtor and any co-owners. It depends mainly on whether the property is claimed exempt. Assuming the property has little or no equity it probably can be retained. This is a complicated issue and you should seek the advice of an attorney who is a certified specialist in bankruptcy law. consult the State Bar for a listing of those attorneys in your area.
Answered on Jun 15th, 2011 at 6:46 AM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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Yes. She will then be responsible for the full price. This is assuming no equity in the house. If there's equity, the trustee could either sell or your sister could pay the trustee the value s/he thinks would be obtained by a sale. The creditor may mark her credit report showing the house as bankrupt, but they're not allowed to do that so you should tell her to check her credit report after you file and to make them correct that notation.
Answered on Jun 15th, 2011 at 6:37 AM
Bankruptcy Attorney serving Atlanta, GA
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Saedi Law Group, LLC
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That depends. If there is equity in the house that is unprotected by your bankruptcy exemptions on your half of the home the bankruptcy trustee could force a sale of the property. Your sister would then be required to "buy" back the equity that you were over in the case. You would need to check with a bankruptcy attorney in your area to review what exemptions are available to you and if your entire share of the home would be protected.
Answered on Jun 14th, 2011 at 1:39 PM
Bankruptcy Attorney serving Seattle, WA
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Symmes Law Group, PLLC
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Whether your sister can keep the house will depend on whether the house has any equity. If there is no equity you sister can continue to make the full mortgage payment and retain the home. If there is a substantial amount of equity in the home and you don't use exemptions to protect the home, the trustee may sell the home and pay your sister her share of the equity proceeds.
Answered on Jun 14th, 2011 at 10:48 AM
Alternative Dispute Resolution Attorney serving Ventura, CA
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Zahn Law Office
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It depends upon the loan. If it is your name alone, then it is possible to lose the home. If you are in my area and are looking for an attorney, please contact me for a free consultation.
Answered on Jun 14th, 2011 at 10:12 AM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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You and your sister can continue to own and keep the house so long as the mortgage payments are current. If you have equity in the house you must be able to exempt your equity. Otherwise, the trustee can sell the house to pay your creditors with your share of the unexempt equity. Your sister would get her share of the proceeds of the sale and your share will go to the trustee less the amount you were able to exempt (which will be paid to you). If you do have equity, make sure you consult with a lawyer before filing a bankruptcy case.
Answered on Jun 14th, 2011 at 10:11 AM
Glen Edward Ashman
Your question lacks sufficient information to answer. If you file, she MAY lose the house, depending on many details such as the amount of equity, the payment status, the lender, and your finances. And she may not. You have not given enough financial information. See a lawyer with all your numbers.
Answered on Jun 14th, 2011 at 10:10 AM