Q: In bankruptcy a married couple only one in bankruptcy and the home is being sold can bankruptcy take the proceeds ?

A: In bankruptcy cases where only one spouse has filed for bankruptcy, the impact on jointly owned assets, such as a home, can vary depending on several factors, including state law and the specifics of the bankruptcy filing. If the house is not included in the bankruptcy estate because it is considered exempt, or for other reasons, the bankruptcy trustee typically does not have the authority to sell the property to satisfy creditors. However, the details of ownership, equity, and the type of bankruptcy filed (Chapter 7 or Chapter 13, for instance) can influence this outcome.

If one spouse is not involved in the bankruptcy and has been making payments on the home, but both names are on the title, the situation becomes more complex. The non-filing spouse's financial contributions to the property could potentially protect the property from being sold by the bankruptcy trustee. Yet, the trustee may look into the equity that the filing spouse has in the home to determine if part of it can be used to pay creditors.

To navigate these complexities, it's important to consult with a legal professional experienced in bankruptcy law. They can provide advice tailored to your specific situation, including how the bankruptcy filing affects ownership and the potential sale of the home. Legal counsel can also offer strategies to protect your rights and financial interests, whether that involves negotiating with the bankruptcy trustee or taking legal action to prevent the sale of the property.