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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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If a piece of property, free and cllear, has 2 couples on title

Resolved Question:

If a piece of property, free and cllear, has 2 couples on title and one of the couples is divorcing and one of them is filing bankruptcy will that property be liquidated to pay debts for the person filing?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.

I am the JustAnswer expert that will be helping you today. I am a lawyer with 25 years experience. Although I am not your attorney, I hope that I can give you helpful legal information.

The trustee in bankruptcy may liquidate the debtors interest in the property for the benefit of creditors. This means that the trustee may sell only the debtor's interest in the property. Typically the trustee would offer the purchase of the property interest to the other co-owners. Any money received by the trustee would be applied towards the debtor's debt.
Customer: replied 7 years ago.
my husband, myself, our daughter and her soon to be ex are the ones on title , so what would happen if we don't want to pay anything for her share? I know her ex would not either. He is being asked to quick claim his share either to us or her through the divorce. This property is probably only worth maybe $40000
Expert:  Ellen replied 7 years ago.
The Trustee would had the option to sell her interest to a 3rd party or may determine that her interest in the property cannot be sold if there is no market for it and may abandon his interest in the property. If the trustee abandons his interest, your daughter would be able to retain her share of the property
Customer: replied 7 years ago.
would it be wise for her to quick claim her interest over to us ? She has not filed yet but wi probably do it within the next month or so.
Expert:  Ellen replied 7 years ago.

The transfer would be considered either a fraudulent conveyance or a voidable preference in a bankruptcy proceeding.both would be disadvantageous to both her and you
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