Legal Question in Bankruptcy in Virginia

My husband and I are considering filing bankruptcy. My husband, along with his brother and father, own a home together. The brother currently resides in the home. How would this work in a chapter 7 bankruptcy? The home is paid for. My husband and I own a home with a mortgage and no equity.

Asked on 10/08/10, 6:03 pm

1 Answer from Attorneys

Daniel Press Chung & Press, P.C.

The trustee would probably sell the jointly held property and pay your husband's brother and father their shares. Normally, they would have an opportunity to buy your husband's interest from the trustee for a modest discount from market value. You may want to consider filing a chapter 13, or selling the property to the father and/or brother for fair market value before filing (but then you need to turn over any of the proceeds that you can't exempt).

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Answered on 10/14/10, 6:30 am

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