Question

Can we sell our jointly owned home before bankruptcy?

I want to sell our jointly owned house. My ex wife lives in the house and won't buy me out or sell. What are my options?
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Answered By: Philip R. Boardman, Attorney at Law
Yes, you can sell the house. However, you need to speak with an attorney about the impact that will have on your bankruptcy in terms of your exemptions. If you end up with cash, that may be difficult to exempt.

Answer Applies to: Virginia
Replied: 11/16/2011

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Answered By: Janet A. Lawson Bankruptcy Attorney
If you file that will relieve you of any obligation to pay the mortgages. It will not get you any money if there is equity. You will have to go to the family law court for that.

Answer Applies to: California
Replied: 11/14/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Alfred Law Firm
If she does not want to sell, you cannot force her to. If you have no equity in the home, you should consider filing a chapter 7 (if you qualify) and not reaffirm the debt. By not reaffirming the mortgage debt, you will wipe out the debt against you and she alone will remain liable for the mortgage.

Answer Applies to: Georgia
Replied: 11/13/2011

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Answered By: Heupel Law
Yes, you could sell the home before filing bankruptcy, and if it was your homestead, you can protect the proceeds even after you file.

Answer Applies to: Colorado
Replied: 11/11/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Buff & Chronister, LLC.
You can sell a home prior to filing bankruptcy, many people seek to sell their home through normal means, short sales, and even deed in-lieu of foreclosure. The sale of any property, real or personal, prior to filing bankruptcy must be conducted in an arms-length transaction; this involves a third-party and usually at a fair market value for the property being sold. You may have an issue though. If your ex-wife is in the home and you are bound by a divorce decree, in some form or another, to ensure you do nothing to impede her ability to live in the home, then you cannot sell the home without her consent. If she is on the deed or mortgage, you will not be able to complete a valid transaction to sell the home without her written consent. If you are having to pay the mortgage on the home and a divorce decree is in place that requires you to maintain those payments, you can still file for bankruptcy, but that debt will not be dischargeable.

Answer Applies to: Georgia
Replied: 11/11/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Theodore N. Stapleton, PC
You can file a chapter 7 bankruptcy proceeding if you qualify and the Trustee will sell the house.

Answer Applies to: Georgia
Replied: 11/11/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Dan Wilson Bankruptcy
No problem with selling house so long as it is a true salearm's length transaction with a stranger for fair market value. If you receive any funds from the sale keep them separate to claim the "proceeds from sale of homestead" exemption.

Answer Applies to: Colorado
Replied: 11/11/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Diefer Law Group, P.C.
The issue will be how much money will you get and can you protect that equity if you file for bankruptcy. Since there is equity in the property (I assume), you want to make sure you don't make a mistake. You need to consult a bankruptcy attorney. If you don't, you can risk losing the house.

Answer Applies to: California
Replied: 11/11/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: The Law Offices of Kristy Qiu
No, otherwise you'd have to include the proceeds as asset in your bankruptcy. Unless it's a homestead property of yours and you intend to use the asset towards the purchase of a new homestead property. However, since you have not been living in the house, it would be fraud to claim it as homestead.

Answer Applies to: Florida
Replied: 11/11/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Charles R. Nettles - Attorney at Law
You can sell your home prior to bankruptcy. You can't sell your home with her in it. Unless your Divorce Decree orders her to sell it, then you are stuck. The question could be resolved by a Family Law Court but you would have to Reopen your Divorce case and sue her for a modification. Alternatively, if you told her that you were filing whether liked it or not and that the Bankruptcy Court has the power to sell the entire house out from underneath her and then give her a check for her share and that neither of you would have any say so as to the selling price unless you were ready to pay more, she might see the light. Or not.

Answer Applies to: Texas
Replied: 11/11/2011

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Answered By: Siegel & Siegel, P.C.
Unless the divorce decree says otherwise, you can bring a lawsuit called a partition action in state court.

Answer Applies to: New York
Replied: 11/11/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Bankruptcy Law office of Bill Rubendall
You are allowed to sell a jointly owned home before bankruptcy. You will want to seek advice on how this will affect your ability to claim this asset or its proceeds as an exempt asset.

Answer Applies to: California
Replied: 11/10/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Law Office of Xochitl Anita Quezada
You can sell your home prior to filing bankruptcy. However, the amount you receive could potentially affect whether you can file at this time. Also, what you do with the proceeds is important. The trustee would use that money to pay creditors. I highly suggest you speak to an attorney before going forward with the sale.

Answer Applies to: California
Replied: 11/10/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Carballo Law Offices
You can sell anything you want but you will need to report the sale and explain in the bankruptcy case what you did with any money you got from the sale. The money cannot simply disappear.

Answer Applies to: California
Replied: 11/10/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Evans & Evans Law Firm, LLC
Can we sell our jointly owned home before bankruptcy? - yes, but depending on what equity you may have in the home, you may not want to convert otherwise exempt equity into an otherwise UNEXEMPT asset. Further consideration of your individual circumstances is necessary. Question Detail: I want to sell our jointly owned house. My ex wife lives in the house and won't buy me out or sell. What are my options? - Wasn't that issue addressed in the divorce decree or property settlement agreement? If she is TRULY your "ex-wife" and you are LEGALLY divorced, then there should be clarity about WHO has title to the home. Can't provide any more insight without more information.

Answer Applies to: South Carolina
Replied: 11/10/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Ruiz Law Group, P.C.
I am assuming that you are already divorced. Your options may be to seek a partition action forcing your ex to sell.

Answer Applies to: New York
Replied: 11/10/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Weber Law Firm, P.C.
Yes. You can sell your home before bankruptcy, but it may not be a good idea. This is a very complex question which should be discussed in detail with a qualified bankruptcy attorney.

Answer Applies to: Texas
Replied: 11/10/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Ashman Law Office
You can hire a lawyer, spend months or years and lots of money and file a partition case, spending tons of money and likely complicating a bankruptcy. Or you can abandon the idea and see a bankruptcy lawyer.

Answer Applies to: Georgia
Replied: 11/10/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Moore Taylor & Thomas PA
You should consider how are you going to sell your home before bankruptcy if your wife is a joint owner and won't agree to sell.

Answer Applies to: South Carolina
Replied: 11/10/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Harkess and Salter, LLC
You need the divorce court to force a sale over her objection.

Answer Applies to: Colorado
Replied: 11/10/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: The Schreiber Law Firm
Usually the issue of what happens to a jointly owned house after divorce is addressed in the a dissolution decree. If it was, that document controls. Why do you believe it is better to sell the house before bankruptcy? It may very well be better to have the house rather than cash from the sale in terms of protecting assets with available exemptions.

Answer Applies to: California
Replied: 11/10/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Mikhail Law Group, APC.
The answer completely hinges on the current amount of equity.

Answer Applies to: California
Replied: 11/10/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

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