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Roger
Roger, Attorney
Category: Bankruptcy Law
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Hello, My sister in Ohio is in a Chapter 13 with about 2years

Customer Question

Hello,

My sister in Ohio is in a Chapter 13 with about 2years left. I live in Missouri.

Sadly, our grandparents in Oregon have both passed away and have left our families vacation beach home to both of us 50-50.

Can the bankruptcy court demand we sell her half of the property and/or demand that I sell my half also so they will receive her 50% ownership?

Signed...worried of loosing our home after 4 generations.

Todd
Submitted: 6 years ago via Cornell Legal Info Institute.
Category: Bankruptcy Law
Expert:  Roger replied 6 years ago.

Under Chapter 13, the inheritance must be reported to the Chapter 13 trustee, who can attach, force the sale of the property and use her 1/2 of the proceeds to pay the unsecured creditors up to the extent of the allowed unsecured claims.

 

If the potential exists for this to occur, you need to discuss the matter with an attorney to look at some options. There are ways to work out a compromise with the trustee - possibly one that involves you buying out your sister's 1/2 interest to keep title to the property. Also, the property may be available to be placed into a trust that will protect the property from the trustee, etc.

 

I would suggest before you take title to the property that your sister speak with her bankruptcy attorney and decide the best way to proceed.

Expert:  Roger replied 6 years ago.

Under Chapter 13, the inheritance must be reported to the Chapter 13 trustee, who can attach, force the sale of the property and use her 1/2 of the proceeds to pay the unsecured creditors up to the extent of the allowed unsecured claims.

 

If the potential exists for this to occur, you need to discuss the matter with an attorney to look at some options. There are ways to work out a compromise with the trustee - possibly one that involves you buying out your sister's 1/2 interest to keep title to the property. Also, the property may be available to be placed into a trust that will protect the property from the trustee, etc.

 

I would suggest before you take title to the property that your sister speak with her bankruptcy attorney and decide the best way to proceed.

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