Legal Question in Bankruptcy in Missouri

Property disposal

The subject owes a bank more than she can repay. The bank only has a note, no mortgage on any property. The subject along with 3 other siblings are named on the deed as owners of her parents' house and acreage. If the subject takes bankruptcy, it is my understanding the parents' home will be sold to pay the debt of the subject. Question: Can more than the subject's one-fourth interest in the proceeds of the sale be used to satisfy the subjects debt?


Asked on 1/10/98, 3:04 am

1 Answer from Attorneys
Mark Markus Law Office of Mark J. Markus

Property Disposal

First of all, it is not necessarily the case that the parent's home would be sold in a BK. It depends on what equity, if any, is in the house and what exemptions are available under the laws of the state in which the debtor is filing.

Assuming there is equity and it is sold, only the 1/4 interest should be what the Trustee in BK could get, but this depends in part on the community property laws of the relevant state, whether the debtor is married, etc.

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Answered on 1/11/98, 10:57 pm


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