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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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My brother and I co own a family camp. I just filed chapter

Resolved Question:

My brother and I co own a family camp. I just filed chapter 7 bankrupsty. what rights does my brother have? He had nothing to do with my bankrupstsy. He really doesn't want to get rid of the place however the trustee said he has to buy them out. It just doesn't seem right. He told us that my brother can buy them out for $100,000, sell it for $200,000 and split the money or the trustee said he could sue my brother. Any suggestions?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.
Hi JACustomer,
How much equity does the camp have? (Equity is the current market value minus the balance on any loan secured by the camp.)
Did both of you contribute equally to the equity?
Customer: replied 5 years ago.

It is a family camp that both of us own. Our parents are deceased. The bankcruptsy court did their own appraisal of $175,000 a year ago. Recently the trustee valued it at $200,000. It is a remote camp that we have tried to sell in the past that couldn't even get $100,000 for it years ago. No central heat and water is pumped out of the lake when not frozen. It also only has access 3 seasons a year. I mentioned to my brother that we might want to get our own appraisal. Although he had nothing to do with anything, can they force him to sell or buy. Can he make a rediculous offer?

 

Expert:  cfortunato replied 5 years ago.

The Bankruptcy court is entitled to your share of the equity - which is 1/2 of the market value. The amount the trustee appraised it for ($200,000) is negotiable, and your brother can offer a much lower amount. Trustees often do accept low offers, to avoid the time and expense of having to sell the property - which the trustee can do.

 

I think this is what you wanted to know. If not, please let me know.
Thank you.

 

 

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