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Asked 3/17/2010

Can I be forced to sell real estate in Chapter 13 Bankruptcy?

I just found out that I jointly own property with my brother that had been owned by my mother when she was alive. He took care of her finances when she was alive and he is now wanting to sell this piece of property. I do not want to sell the property, but he is threatening to disclose this to the bankruptcy trustee if I do not agree to his terms for the sale of the property which is less than half(my percent of ownership) of the amount of sale. I am trying to get in touch with my bankruptcy attorney to let him know what is going on. I didn't disclose this when filing bankruptcy because did not know my mother had put me on the deed years ago. I checked with real estate and they think it is probably worth only about $12,000 total and this needs to be split between three siblings. Is there some type of exemption on this amount of money or what happens when I disclose this to the trustee? If it is sold will the trustee keep the money and distribute it among creditors or do I get to keep this? If I'm able to pay for this without making a loan, can I buy my brother's part out under Chapter 13?

 
 
 
 
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Answer 1/1 - Submitted 3/17/2010

You need to let your atty tell you the bad news. and you should think about having your brother arrested for extortion, that will eat up his share of the property . With family like that who needs enemies.
I really cannot advise you on a "13" because each one is very different, and there are no hard and fast rules.
BUT I think you can buy him out, talk t your attorney, as generally with 13 you can keep encumbered property ( and your property IS encumbered by other owners) it is chapter 7 in which you would need an exemption for the value of the land. I am serious about your brother, he needs to worry that he might go to prison.

 
 
 
 
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