Bankruptcy Co-Ownership Offset Disputes – Applying Partition Laws in a Section 363(h) Sale of Co-Owned Property – In re Flynn, 297 B.R. 599 (B.A.P. 9th Cir. 2003)
When a co-owner files for bankruptcy in a partition, the bankruptcy trustee or debtor-in-possession may seek to sell the co-owned property under Section 363(h) of the Bankruptcy Code (11 U.S.C. Section 363(h)). However, the Bankruptcy Court is empowered to apply California law on co-ownership offsets to ensure that the proceeds are equitably divided. These bankruptcies … Read More
