Interest in inherited home part of bankruptcy estate?
I made an assignment in bankruptcy. My mother is ill and if she passes away after my assignment in bankruptcy and before my discharge I want to know what happens if in her will she “gifted” her home to both myself and my niece. Will my interest in the home become part of my bankruptcy estate and if so can my trustee compel a sale of the home even if my niece is a joint owner?
Yes, your share of the home will become part of the bankruptcy estate and the trustee will file a lien on the home in the Land Registry Office to prevent it from being sold without the proceeds going to the bankruptcy estate.
The trustee can compel the sale of the home.
It would be less costly if you cooperated with the trustee.
Any proceeds remaining after the bankruptcy costs and the creditors are paid in full will go to you.
– Earl Sands, Licensed Insolvency Trustee