Q: My bankruptcy trustee filed an adversary case against my spouse to take possession & take over joint ownership of home
This was a chapter 7 asset case $40k in debt and $350k in home equity. Spouse never followed through with buying me out in family law causing me to file bankruptcy.
The judge ordered, adjudged, and decree the judgement.
What happens next to the marital residence. How long will it take to get the house listed?
A:
In a situation where a bankruptcy trustee has filed an adversary case against your spouse to take possession and control of the jointly owned marital residence, the following steps are likely to occur:
1. Transfer of ownership: The court's judgment will likely result in the transfer of your interest in the property to the bankruptcy estate, which is controlled by the trustee.
2. Negotiation or forced sale: The trustee may attempt to negotiate with your spouse to sell the property voluntarily. If your spouse refuses to cooperate, the trustee can petition the court to force the sale of the property to satisfy your creditors.
3. Property valuation: The trustee will obtain an appraisal or valuation of the property to determine its fair market value.
4. Listing the property: Once the trustee has control over the property and has determined its value, they will typically hire a real estate agent to list and market the property for sale.
The timeline for listing the house can vary depending on several factors:
- The trustee's workload and priorities
- The level of cooperation from your spouse
- The need for any repairs or improvements to make the property more marketable
- Local real estate market conditions
In general, it may take several weeks to a few months for the trustee to complete the necessary steps and list the property for sale. However, in some cases, the process could take longer if there are legal complications or disputes that need to be resolved.
It's important to note that any proceeds from the sale of the property will first be used to pay off any outstanding mortgages, liens, or other encumbrances on the property. The remaining funds will be distributed to your creditors through the bankruptcy estate. Any excess funds after paying creditors will be returned to you and your spouse according to your respective ownership interests.
Timothy Denison agrees with this answer
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