Q: I own a duplex with a friend. We each live in one unit. The mortgage loan and the title list both of us.
He is going to file for bankruptcy..is that going to affect me or the property in any way?
A: When the co-owner files for bankruptcy, he will be required to list the property, his interest, as well as listing the mortgage lender as a secured creditor. There will also be a place for him to identify the co-owner. It will be critical to get a current fair market value for the property from a local realtor as the value must be listed along with the balance due on the mortgage. It will also be important for him to seek guidance from an experienced bankruptcy attorney who can evaluate the property and make sure that it will not be jeopardized as a result of the bankruptcy filing. He should not file without this crucial analysis and without an attorney representing him in the case.
Sally J. Elkington agrees with this answer
A: The short answer is yes. There are all sorts of considerations that should be clear before he files. First and foremost is he using a reputable attorney. Next is he filing a Chapter 7 or Chapter 13. Another question is do you have equity in the property and if so how much. Also, how do you hold title in the property. As you can see, this can be very complex. Make sure your co-tenant gets all of these questions answered to your understanding.
A: That may indeed affect your ownership rights. What type of bankruptcy? Will the duplex be attached to the bankruptcy? Does he owe money on it? Do creditors have an interest in it? More details are necessary to provide a professional analysis of your issue. The best first step is an Initial Consultation with an Attorney such as myself. You can read more about me, my credentials, awards, honors, testimonials, and media appearances/ publications on my law practice website, www.AEesq.com. I practice law in CA, NY, MA, and DC in the following areas of law: Business & Contracts, Criminal Defense, Divorce & Child Custody, and Education Law. This answer does not constitute legal advice; make any predictions, guarantees, or warranties; or create any Attorney-Client relationship.
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