sister on my title/ morgage she is filing 13, how does that effect me.

[outofdebt201]

So my sister and I purchased a house together back in 2002 and I have never been late on a payment. My sister got married and moved out some eight years ago when she purchased her house with her husband. I just filled chapter 7 because of a failed business. And it turns out my sister is now filing a chapter 13. However, she is still on my mortgage and title. We haven’t talked in 8 years because of a falling out. And now she wants me to inform her lawyer of how much the house is worth, and tax info. She is going to email me the information she wants me to fill out and send to the lawyer. What should I keep an eye out for? Could I lose my house because she is on the loan and title?

Thank you for your help.

[lrprn]

Knowing only the minimal information you've shared, your sister will have to list her 50% ownership of your house when she files. It doesn't matter who has been living in the house, who has been making the mortgage payments, and for how long. Her name is on the mortgage and title so legally she owns 50% of your home.

If your sister can't protect all of her home's equity and her 50% of your home's equity with her state homestead exemption (and a wild card exemption if her state has one), that *might* put your house at risk. It all depends on her Ch 13 trustee, how much of her 50% equity in your house she can't protect with her exemptions, and whether her trustee thinks whatever she can't protect is worth forcing a sale of your house to distribute her 50% of the proceeds to her creditors. (You would get the other 50% in cash - hopefully your business Ch 7 will be long discharged by then.)

I'm very sad to have to tell you that the sale of house owned by more than one family member when one of the family members files bankruptcy does happen sometimes

If I were you, I would ask to speak to her Ch 13 lawyer directly about your house and get his/her thoughts on whether it's at risk or not. Her lawyer should know how her trustee will treat this situation.

[despritfreya]

I don't believe you have anything to worry about. . .

1. You filed 1st therefore, until your case is closed, the home is an asset of your estate and is protected by your bk.

2. The home is subject to your homestead exemption, which, if I am not mistaken, is unlimited in Texas.

3. Your sister's interest in the home should be limited by the amount of her financial contribution. She may have a 1/2 interest in the property but, if that interest is only "legal" and not "equitable" (who is paying for the home and who paid for it during the time she lived in it?) it has no value. From your post it appears she resided in the home for only 1 year so, how much did she put down and how much did she pay during the 1 year? Remember a Trustee in a Chapter 13 does not typically liquidate assets. A debtor simply agrees to pay the non-exempt value of the asset to the creditors over the life of the Plan. In her case it may be very little.

You should discuss this matter with your bk attorney and get a copy of your sister's Schedule A and the Chapter 13 Plan.

Des.