Asked on Oct 21st, 2014 on Bankruptcy - California
More details to this question:
My partner and I both are on the deed of our home but I'm not on the loan. We pay equal on the motgage and now the lawyers for the bankruptcy court want to sell our home to pay some of his creditors.. We are legally reigistered domestic partners. Can the lawyers ask the judge to sell our home even though I was not the one that file bankruptcy? This was not a joint bankruptcy. What's rights do I have and do I need ot get a lawyer to fight this?
The bankruptcy court doesn't have lawyers. I assume you're referring to the bankruptcy Trustee, and I'm also assuming this is a Chapter 7 case (although you don't state).
If there is non-exempt equity in property, the Trustee can sell a co-owner's interest in the property. Of course, the co-owner must be paid their share of any proceeds from the sale.
Did your partner want to lose the home? If not, why did he/she file a Chapter 7 case when there was realizable equity?
You can oppose the sale of the property, but the court would have to determine that the detriment to you outweighs the benefit to the creditors of the bankruptcy estate, among other things. You may want to consult an attorney in the area where the case is filed for more details on that.
But the easiest thing to do is for your partner to convert the case to Chapter 13 or Chapter 11, if they are otherwise eligible to do so, and that will resolve the problem with the trustee selling the property.
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