Can Joint Home Ownership Be Affected in a Bankruptcy?

Bankruptcy Attorney

Many individuals decide to buy property jointly. This can be a husband and wife, or other family members or even two friends. It may be for investment purposes. The problem that can arise however, is that a home that is owned jointly could be affected by one of the owners going bankrupt.

Property Matters

It is most important with any bankruptcy undertakings that the individuals involved use the services of bankruptcy attorney in Dayton.

If one of the homeowners files for a Chapter 7 bankruptcy, it may mean that either the other owners of the home will have to buy out the individual’s share that is going bankrupt. The bankruptcy trustee could force sale of the home if this is not done. Out of the proceeds of the sale your share will be paid to you. The rest will go towards the bankruptcy debts as determined by the Bankruptcy Trustee.

If the home were able to qualify as being exempt then most likely there would be no forced sale. If the house is not the primary residence then it most likely will not be exempt.

You will have to make the decision as to whether you can come up with the money to buy the property out, or whether you are going to let it go for sale under the trustee. When going into a joint venture such as this it is really important to know the financial stability of those that you are going to partner with.

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