Agent

In bankruptcy sale, must co-owner pay 50 percent of expenses?

Judge decides whether property co-owner should pay sales costs
Published on Dec 28, 2005

John F. Flynn filed Chapter 7 bankruptcy. Among his assets, Flynn owned 50 percent of a property with his mother, Elsie C. Stine. At the time Flynn filed bankruptcy, the property was subject to a state court partition lawsuit to force its sale and divide the sales proceeds between Flynn and Stine. The co-owners eventually agreed to sell the property. The sale produced $120,000 net sales proceeds after paying the realty agent's sales commission and the mortgage liens. Purchase Bob Bruss reports online. From these sales proceeds, the bankruptcy trustee argued that co-owner Stine should pay half the legal costs of clearing title for the property sale, litigating the partition lawsuit, and other sales expenses. Stine argued she should not have to pay half of her son's bankruptcy costs involving this property. If you were the judge, would you rule that co-owner Stine should have to pay half the sales costs of the property? The judge said no! The bankruptcy trustee, the judge began, has no j...

Comments