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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2870
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I AM IN CALIFORNIA....I OWN 50% OF A CABIN WITH ANOTHER COUPLE.

Resolved Question:

I AM IN CALIFORNIA....I OWN 50% OF A CABIN WITH ANOTHER COUPLE. THEY ARE DIVORCING AND SUPPOSEDLY FILING A CHAPTER 7 BANKRUPTCY. WE BOTH HAVE THE CABIN ON OUR HOME EQUITY LINE, SO IT IS OWNED FREE AND CLEAR. THEY ARE TELLING ME THAT THE LENDER CAN GO IN AND SELL THE CABIN WITHOUT OUR CONSENT. IS THAT TRUE? IS THERE A WAY TO HAVE THEM SIGN IT OVER TO US...EVEN FOR A MINIMAL AMOUNT? THEY ARE TELLING ME THAT WON'T WORK, AS THE COURT LOOKS AT A PAPER TRAIL FOR A FEW YEARS...I DON'T UNDERSTAND THAT EITHER, AS MY BOYFRIEND RECENTLY SIGNED OVER HIS 25% TO ME. THANKS
Submitted: 7 years ago via Nolo Press.
Category: Bankruptcy Law
Expert:  Terry L. replied 7 years ago.
Hi and thank you for your question.
If the cabin has no mortgage (from what you are saying, it is paid in full, that you used funds from your home equity line) then it is an asset in the bankruptcy case. if they are filing chapter 7, then the trustee can step in and liquidate the asset. Since you own 1/2, the trustee will usually give you first crack to 'buy out' their interest. From past cases, what co-owners usually do is to take out a mortgage for that amount on the property and pay cash to the trustee so they can keep it. Then you would own 100% of the property. If you don't want it, you could let the trustee sell, and they would pay you 1/2 of the proceeds of the sale. If they transfer it over to you prior to the case, that is fine, but the trustee can void any transfers that are done for less than fair market value. So, they can sell it to you for 50% of the value, then they would be ok, and you could keep the property, no issues. They would need to show the court what they did with that $ though, and their attorney would advise them about that. Thanks for your question, and good luck.
Customer: replied 7 years ago.

I ACCEPTED THIS ANSWER YESTERDAY, AND NOW RECEIVED AN EMAIL ASKING ME TO ACCEPT AGAIN. ARE YOU SURE YOU DIDN'T GET THE ONE YESTERDAY? I DON'T WANT TO BE CHARGED TWICE.

 

THANKS!!!!

Expert:  Terry L. replied 7 years ago.
Hi, thanks for reply. It has not been accepted, so please click accept.
You will not be charged twice. Thanks.
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