Lovald v. Tennyson (In re Wolk)
- Citation:
- Lovald v. Tennyson (In re Wolk), Case No. 10-6050 (8th Cir.BAP Oct. 14, 2010)
- Tag(s):
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- Ruling:
- The strong arm powers under section 544 provide the trustee with the powers of a bona fide purchaser. In South Dakota, a co-owner of property can overcome the presumption that property held as a tenant in common is held in equal shares, as to the other co-owner, but not as against a bona fide purchaser.
- Procedural context:
- Appeal of bankruptcy court denial of order to sell property free and clear under 363(h) where property was held by debtor with non-filing spouse as tenants in common, and under applicable state law (South Dakota), non-filing owner was able to overcome presumptipon of equal ownership. Court found there would be no equity for estate due to extent of ownership by non-filing owner.
- Facts:
- Debtor and wife owned home as joint tenants. Wife contributed majority of purchase price and made all payments on mortgage. The court found equity in the house to be $63,000, and that since only a small portion would go to the estate, the benefit to the estate of a sale free and clear would be outweighed by the detriment to the co-owner.
- Judge(s):
- Kressel, Chief Judge, Federman, and Saladino, Bankruptcy Judges
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