Legal Question in Bankruptcy in California

Re: co-owner of house

You have a disclose all of your assets and debts to the bankruptcy court. If you have a lot of equity in the house, the trustee might decide to sell it for the benefit of your creditors. However, the reasons that you don't live in the house or pay the mortgage might have some relevance to the situation (i.e. you sold the house to a relative without complete a true sale).

You need to discuss this in more detailed with a qualified bankruptcy attorney. Please contact my office if you need further assistance.

Re: co-owner of house

If you were not involved in its acquisition and have never paid the mortgage, a likely successful argument would be that your "interest" in the house is a "resulting trust" and that you have no real equitable interest. On the other hand, if there is less than, say, $40,000 of equity, your share, if any, of the equity could probably be exempted anyway.