QUESTION
If parents willed property had lien, siblings want to sign over property to parties and pay the lien, one sibling is under bankruptcy, what do we do?
Asked on Mar 10th, 2017 on Bankruptcy - Nevada
More details to this question:
Parents willed property to their 9 surviving children, property had lien and still does, all siblings want to sign over property to parties interested in paying off lien, and one sibling is under bankruptcy.
6 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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The sibling in bankruptcy needs the trustee to abandon their interest in the property. File a motion to abandon property in the bankruptcy court.
Answered on Jun 17th, 2017 at 10:19 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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First things first: contact a skilled bankruptcy lawyer, preferably one who is familiar with real estate. My first impression is that the 1/9 share of the brother-in-bankruptcy becomes a property of the bankruptcy estate (i.e. goes to his BR trustee) IF he became entitled to the property within 180 days after the date he filed his BR petition. In other words, if your father died within 180 days of your brother's filing his BR petition, then he must notify his BR trustee who may want some or all of the money.
Answered on Jun 01st, 2017 at 1:53 PM
The bankruptcy trustee "stands in the shoes" of your sibling in bankruptcy, so the trustee must agree with the disposition of the property. Whatever share of the proceeds otherwise going to the bankrupt sibling would go to the trustee instead.
Answered on Jun 01st, 2017 at 1:53 PM
A person in bankruptcy can not sign away title without court permission.
Answered on Jun 01st, 2017 at 1:52 PM
Your question does not lend itself to a quick response. Pay an experienced for two hours of their time so they can explore options with you.
Answered on Jun 01st, 2017 at 1:52 PM
1 Award
That sibling will need to get permission from the bankruptcy court before taking his/her name off the property.
Answered on Jun 01st, 2017 at 1:52 PM