What happens to my 1/9 interest in inherited land in a chapter 7 filing?

[mezzaforte]

What is the name of your state? land in NC, I reside in FL

So I qualify for chapter 7 bankruptcy but want to know what will happen to my 1/9 interest in inherited land from my Grandmother (RIP). It is 85 acres. Sidenote: Tho the land was left to myself and 8 siblings, only 2 of the 9 have used the property for 10 years so they basically have assumed ownership I was told? Id be willing to relinquish my interest, I just don't want to start a family crisis. Hope this makes sense. Thanks in advance.

 

[adjusterjack]

The best person to ask about your 1/9 interest is a bankruptcy lawyer. Ask one.

Understand that 9 people own the property regardless of who uses it.

 

[zddoodah]

So I qualify for chapter 7 bankruptcy but want to know what will happen to my 1/9 interest in inherited land from my Grandmother (RIP). It is 85 acres.

You haven't provided sufficient information to allow anyone to hazard an informed guess what might happen to the property. How much is the 85 acre property worth (current fair market value)? Are there any structures built on the land? If so, what are they? If not, what is the land used for? Answers to those questions can get things started, but there may be more questions.

Tho the land was left to myself and 8 siblings, only 2 of the 9 have used the property for 10 years

Are you one of those two?

so they basically have assumed ownership I was told?

Told by whom? What does "basically have assumed ownership" mean? If you're thinking that the other seven might somehow have been divested of their ownership, that's almost certainly not true.

Id be willing to relinquish my interest, I just don't want to start a family crisis.

Needless to say, no one here has any idea what might or might not "start a family crisis" in your family. As concerns your bankruptcy question, you need to understand that "relinquish[ing] [your] interest" may only complicate things. If "relinquish" means give away without receiving fair market value, then the bankruptcy trustee could seek to undo to the transaction as a fraudulent transfer (assuming you don't wait several months before filing bankruptcy). On the other hand, if you sell your interest to one or more of your siblings, then the cash you receive in exchange would be an asset of your bankruptcy estate.

Needless to say, you need to discuss this with your bankruptcy attorney.

 

[despritfreya]

In a nutshell. . .

You have a 1/9th interest in property. You are required to list that interest on Schedule A. Unless some exemption will cover it, your Chapter 7 Trustee has the right to sell your 1/9th interest to the highest bidder. Whether or not he/she will exercise the right to sell is anyone's guess. If he/she chooses to offer the property for sale, the sucessful bidder could be you, another family member, or a complete stranger. If the Trustee elects not to offer the asset for sale then, in the end, ownership of the 1/9th interest will be abandoned and returned to you.

There is no way for anyone to predict what a Trustee will or will not do.

Des.