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I am sorry to learn of your sister's matters.
There are 2 issues associated with co-ownership of real property.
It is far better practice for her to engage a real estate agent and sell the property to the other party, they can then get a mortgage and finance the sale themselves.
If your sister is considering bankruptcy protection, please have her contact a local attorney. While it is possible to file for bankruptcy without a lawyer (see: http://www.uscourts.gov/services-forms/bankruptcy/filing-without-attorney) she will not get the most out of her bankruptcy, and it is very easy to overlook something which can cause her to lose some of the benefits of her filing. (Most bankruptcy attorneys do not charge very much when compared to the value of their services). Contact a bankruptcy attorney as early as possible, as good pre-bankruptcy planning will help you get the most out of your petition.
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