What can trustee do to 1/9 interest of property I’ll receive?

[Simplicity8!]

He might very well be able to negotiate enough of the debts down that he could entirely avoid bankruptcy if he used the inheritance to pay debts. Credit card companies are certainly willing to negotiate.

Wait who are you referring to? “He” I haven’t received any $ from home as it’s not even been cleaned out yet or touched in years

 

[Simplicity8!]

Wait who are you referring to? “He” I haven’t received any $ from home as it’s not even been cleaned out yet or touched in years

Wanting to know best way to handle %of property I may receive in unknown future but affecting my bankruptcy.

 

[Simplicity8!]

not sure yet the exact terms, will be split between 9 people I believe. I do not have any assets to cover debts. Since brother took this long it is uncertain when it would even be listed. It is in Oregon the house. I live in CA. House may be worth $250-300,000? I owe $45,000 debt.

 

[Zigner]

You should speak to a bankruptcy attorney.

 

[despritfreya]

. . . does the will say that the property is to be directly transferred to you and others? Or does it provide for sale of the property and distribution of net proceeds? How many others will receive an interest? Is the property residential, commercial or something else? Are you confident that the estate has sufficient liquid assets to pay estate debt such that the property will not have to be sold to pay estate debt? When do you expect the administration of the estate to be completed?

All very excellent questions.

. . . I think it is unlikely that most Ch. 7 trustees would take control of a small percentage interest in a property that is (or soon will be) jointly owned by multiple siblings.

Just to clarify - it depends upon what that interest is worth. Certainly, if it will cost more to administer the asset than it will bring in for the benefit of creditors the Trustee should and probably will abandon it. However, based upon the info supplied, this asset has substantial value to the bankruptcy estate even if there is only a 1/9th interest in the property/inheritance itself.

Des.

 

[zddoodah]

It has been years since he passed and brother in charge of estate just started cleaning house. I just found out about this a week ago. It could be years before house is sold

Not sure if you meant "cleaning house" literally or metaphorically, but it sounds like all y'all have been derelict in dealing with your grandfather's estate.

Could I sell my portion 1/9 back to brother or rest of beneficiaries?

At the moment, it sounds like you don't own anything other than a contingent right in your grandfather's estate. You certainly could offer to sell that right to one or more of your siblings, but we obviously have no way of knowing if any or all of them would be interested or whether they'd be willing to pay a price you'd be willing to accept.

Wanting to know best way to handle %of property I may receive in unknown future but affecting my bankruptcy.

You need to confer with a local bankruptcy attorney. When you do, make sure you have a copy of your grandfather's will and any documents relating to the proceedings with the probate court (if probate has even been filed, which isn't clear). Since you didn't answer a lot of the questions that I and others asked (because it sounds like you don't know the answers), we are very limited in terms of what we can tell you.

 

[LdiJ]

Wait who are you referring to? “He” I haven’t received any $ from home as it’s not even been cleaned out yet or touched in years

I am saying, that rather than filing bankruptcy, you should consider waiting until after the house is sold and then negotiating with your creditors.

 

[Simplicity8!]

Not sure if you meant "cleaning house" literally or metaphorically, but it sounds like all y'all have been derelict in dealing with your grandfather's estate.

I am not close with most of my siblings. I just found out about the house recently. Brother hasn’t worked on it for a few years. Just starting to.


At the moment, it sounds like you don't own anything other than a contingent right in your grandfather's estate. You certainly could offer to sell that right to one or more of your siblings, but we obviously have no way of knowing if any or all of them would be interested or whether they'd be willing to pay a price you'd be willing to accept.




You need to confer with a local bankruptcy attorney. When you do, make sure you have a copy of your grandfather's will and any documents relating to the proceedings with the probate court (if probate has even been filed, which isn't clear). Since you didn't answer a lot of the questions that I and others asked (because it sounds like you don't know the answers), we are very limited in terms of what we can tell you.

Found out it’s a trust. He mentioned no probate? This is all a different language for me. And soon going to find out what the will says. Just trying to get some information as I receive it also.

 

[Simplicity8!]

I am saying, that rather than filing bankruptcy, you should consider waiting until after the house is sold and then negotiating with your creditors.

I found out we would be lucky to get $10-20k. I owe more than that and it’s super tough to even get by before and now much worse

 

[Simplicity8!]

All very excellent questions.



Just to clarify - it depends upon what that interest is worth. Certainly, if it will cost more to administer the asset than it will bring in for the benefit of creditors the Trustee should and probably will abandon it. However, based upon the info supplied, this asset has substantial value to the bankruptcy estate even if there is only a 1/9th interest in the property/inheritance itself.

Des.

The house needs a lot of work to sell. A buildout that was added without permits, $10k taxes owed...it’s worth maybe $225k? Split between 9 kids. Just wanted to know how much can be protected exempt in CA and also not have them take over and try to sell it. If they did and I owe $45,000 could they do take $45,000 and leave remaining to rest?

 

[LdiJ]

The house needs a lot of work to sell. A buildout that was added without permits, $10k taxes owed...it’s worth maybe $225k? Split between 9 kids. Just wanted to know how much can be protected exempt in CA and also not have them take over and try to sell it. If they did and I owe $45,000 could they do take $45,000 and leave remaining to rest?

You have already been told that they cannot take more than your share. The answer won't change no matter how many times you ask the question.

 

[zddoodah]

Found out it’s a trust. He mentioned no probate? This is all a different language for me. And soon going to find out what the will says. Just trying to get some information as I receive it also.

If the house is owned by a trust, then the terms of the will may not matter. You need to get clear and complete info.

Just wanted to know how much can be protected exempt in CA and also not have them take over and try to sell it. If they did and I owe $45,000 could they do take $45,000 and leave remaining to rest?

I don't understand the second sentence here.

Since this isn't your primary residence, you probably would only be able to claim your interest as exempt under the "wildcard" exemption, which is just over $25k if you don't claim anything under your homestead exemption. Cal. Code Civ. Proc. section 703.140(b)(5).

As far as the trustee selling the property under section 363 of the Bankruptcy Code, I'll leave it to "despritfreya" to clarify or expand on the comment in post #9 in the thread.