Protecting Your Family’s Home: What You Need to Know About Filing for Bankruptcy as a Co-Resident
- If you are looking for advice on "personal bankruptcy" in Osaka, please contact[Kokoro Osaka Law Office]
- When filing for personal bankruptcy, in principle, all of the bankrupt person's assets are placed under the control of a bankruptcy trustee, and are liquidated through procedures such...
- If a home is shared with a family member, you will have a shared interest in the home, although this may vary in percentage.
What happens if I file for bankruptcy if I share my home with my family? | Bankruptcy by a lawyer by Shin Law Office
If you are looking for advice on “personal bankruptcy” in Osaka, please contact[Kokoro Osaka Law Office]
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- I share a home with my family. What happens if I file for bankruptcy?
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1. If you file for bankruptcy while sharing your home with your family
When filing for personal bankruptcy, in principle, all of the bankrupt person’s assets are placed under the control of a bankruptcy trustee, and are liquidated through procedures such as auction and distributed to creditors.
If a home is shared with a family member, you will have a shared interest in the home, although this may vary in percentage.
Such shared ownership of real estate will also be evaluated as property in bankruptcy proceedings, so if bankruptcy proceedings are filed in this state, the shared ownership of the home may be auctioned and transferred to a third party.
In addition, if there is a shared ownership of real estate, it is highly unlikely that the bankruptcy proceedings can be completed as a simultaneous cancellation case, so you will be required to make an advance payment of administration fees at the filing stage.
Therefore, you need to be careful when preparing for bankruptcy.
2. There is a possibility that division of the property may be requested
Furthermore, unlike when the complete ownership of a home is auctioned, when a shared ownership interest in a home is auctioned, it does not mean that the entire family must move out of the home.
The only thing that happens is that the right to share the home has been transferred to a third party; the rights held by your family are not lost.
However, after the auction, a third party who acquires a shared share may demand a division of the shared property.
If this happens, the third party who won the bid for the shared share and the other family members who shared the home other than the bankrupt person will have to negotiate whether to buy out the shared share or sell their share and move out of the house.
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