The short answer to that question is: yes, the trustee can indeed sell property owned jointly. 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, but first the trustee needs to file what’s called an “adversary proceeding” (or “AP”) in the bankruptcy court. An “AP” is a lawsuit asking the trustee for permission to do it. 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.
If you’re concerned about the trustee being able to sell property of yours and a co-owner, please call me at 410-484-9000. I would love to hear from you.
