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LawTalk
LawTalk, Attorney
Category: Real Estate Law
Satisfied Customers: 35395
Experience:  I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
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As a follow-up to my original question, the individual has

Customer Question

As a follow-up to my original question, the individual has filed Chapter 7 and of whom I have a lien on his home. The home is is both his name and his wife's name. However, he personally has filed chapter 7 which does not include his wife. If and when he is forced to sell his home to pay off lien holders, do the entire proceeds from the home sale go to pay off the creditors or only his 50%?
Submitted: 3 years ago.
Category: Real Estate Law
Expert:  LawTalk replied 3 years ago.
Good afternoon,

I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today.

In the event of co-owners owning property together, and only one of them files chapter 7, then only the equity of the one co-owner filing bankruptcy will be subject to the creditor's claims. And the non-filing spouse in this case would have the right to buy the other spouse out, paying the Trustee half of the value of the equity in the property, and the court would then distribute those funds to the creditors.

In the event of a sale of the property to a third party, only half of the equity would be claimed by the Trustee for the creditors. The non-filing spouse would keep their share of he equity.

You may reply back to me again, using the Reply to Expert link, if you have additional questions.

I wish you the best in your future,

Doug
Expert:  LawTalk replied 3 years ago.
Good evening Larry,

I wanted to thank you for using JustAnswer, and to inquire whether my answer to you was helpful to your understanding of the law, as regards your question.

Is there anything else that I can assist you with, please feel free to ask. If you do not require further legal information at this time, please feel free to bookmark my profile so you can request me when you do have another question. Here is a link to my profile: http://www.justanswer.com/law/expert-lawtalk/

Thank you very much and take care.

Doug

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