Can a Chapter 7 trustee force the sale of a co-inherited home?
My husband and I will be filing Chapter 7 shortly. My husband's father just passed away and left his home to my husband and his sister. We were not intending to sell the home mainly because we will probably lose our home and were planning on living there. Can we be forced to sell it?
Answer
Yes. It makes no difference if it is inherited. If there is significant net equity (which is a magic number that varies by trustee) for the estate after expenses, it will be sold. Most trustees will first offer to sell the interest to the co-owner (sister), but if that does not work the trustee will seek a court order forcing the sale. Obviously, this is an issue that should be discussed with your bankruptcy lawyer. What will make the situation far worse -- try to transfer it to someone else before filing.
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