Land owned in common?

[Hairy]

The relevant jurisdiction in this question is Indiana. Some details have been changed.

A friend (really) owns some farmland in common with his siblings. He is being encouraged to file bankruptcy. If he were to do so, it would have to be ch13 due to his income. Although the land is from a family farm, he is not a farmer; he works as a medical technician.

There are some buildings on the farmland. Value of his share is roughly $250K. They have no debt associated with the land -- no liens, no mortgages, nothing but the usual property taxes due annually, which are fully paid up.

He doesn't live on the farmland.

How is a shared ownership of farmland treated? Can he be forced to sell his interest to satisfy creditors? Would his siblings be able to buy him out at a "distressed sale" price (even if that price would not be enough to satisfy his debts), or would the property have to go up for open bidding? Would the homestead exemption apply to it, or does it have to go under another, more limited, form of exemption? Would it help if he moved onto the farmland and lived in the old house there?

Thanks,

H.

[AngelinaCatHub]

The relevant jurisdiction in this question is Indiana. Some details have been changed.

A friend (really) owns some farmland in common with his siblings. He is being encouraged to file bankruptcy. If he were to do so, it would have to be ch13 due to his income. Although the land is from a family farm, he is not a farmer; he works as a medical technician.

There are some buildings on the farmland. Value of his share is roughly $250K. They have no debt associated with the land -- no liens, no mortgages, nothing but the usual property taxes due annually, which are fully paid up.

He doesn't live on the farmland.

How is a shared ownership of farmland treated? Can he be forced to sell his interest to satisfy creditors? Would his siblings be able to buy him out at a "distressed sale" price (even if that price would not be enough to satisfy his debts), or would the property have to go up for open bidding? Would the homestead exemption apply to it, or does it have to go under another, more limited, form of exemption? Would it help if he moved onto the farmland and lived in the old house there?

Thanks,

H.

OK I'll try: Check to see if you can homestead in your state. Also in any homestead state, FL, TX and a few others, you must live upon the property for at least six months to homestead it. Sometimes a recorded affidavit is necessary. Even if he could homestead it, it belongs to others as well and he may not be able to do this.

In an undivided interest, he could sell it at a fair market price, and hold that money for the estate. Spending it would not be well. Also it could be possible to purchase it back from the Trustee if allowed, but in a 13, all your monies are to be split out for the creditors. I'm a 7 person so I'm doing my best but a lawyer is now appropriate for such questions since your state rules apply. 'Hub