What happens to a rental house owned by sisters, if the house is paid for and one of the sisters files for bankruptcy?

Get Legal Help Today

 Secured with SHA-256 Encryption

What happens to a rental house owned by sisters, if the house is paid for and one of the sisters files for bankruptcy?

Asked on October 6, 2012 under Bankruptcy Law, Tennessee

Answers:

David Axinn / David M Axinn

Answered 8 years ago | Contributor

There are several possibilities. Persons who file a chapter 7 bankruptcy are allowed to keep a certain amount of property, and if she is able to claim an exemption for it, she may still continue as an owner. If she cannot exempt it, the bankruptcy trustee will own her interest in the property, and usually would try to sell it in order to pay her creditors.

If she filed a chapter 13 bankruptcy (a payment plan), she may choose to keep the property.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption