My name is Ron Drescher. I’m an attorney practicing
bankruptcy and commercial litigation in Maryland, Delaware, Pennsylvania, and Virginia. Today
I want to answer the question I own property jointly with somebody else. Can the trustee
sell their property out from under both of us? The short answer to that question is yes
the trustee can. The trustee has the power under the Bankruptcy Code to sell property
free and clear of the interest of a co-owner in that property. As long as the trustee turns
the net proceeds in that property over to the co-owner, the trustee has the right to
sell it free can clear, but first the trustee needs to file what’s called an adversary proceeding
in the bankruptcy court which is a law suit asking the trustee for permission to do it
and the trustee needs to establish that it’s easier, better, and more feasible to sell
the property out from under the co-owner than any of the other ways that the trustee might
be able to get value for the estate’s interest in that property. My name is Ron Drescher.
I’m an attorney practicing bankruptcy and commercial litigation. If you’re concerned
about the trustee being able to sell property from you and a co-owner, please pick up the
phone and call me. I would love to hear from you.