Real Property and Bankruptcy Know Your Rights

It is important to know that under Common Law in the United States, every property MUST have an Owner.  What does that mean?  In California an elderly man deeded his property in his will to God.  Since according to Common Law, which governs real estate and property law in the United States, God was not to be considered a living person and thus the property could not be deeded.   

So what was the result?  The property reverted to the state of California because of the non payment of taxes.

There are different kinds of ownership of property under common law.  It is important that an individual who is purchasing a property or owns a property and is filling bankruptcy under Chapter 7 or Chapter 11 know of the legal issues and the rights that he may have.  Bankruptcy Law and Real Estate law can be very difficult areas of law to understand.  That is why you need responsible, knowledgeable, and hard nosed Bankruptcy attorneys that will fight for your rights.   At Downtown LA LAW Group we have a staff of bankruptcy attorneys that are here to help. 

One issue which may arise as a result of ownership of real property during a bankruptcy is ownership under Community Property With your spouse.

Community property holds that a property acquired by a husband and wife jointly during the marriage is owned equally by the husband and wife.  That is each party does not owned ½ of the property.  Instead each own an undivided half of the entire property jointly and equally.  Thus there is and cannot be any separation and or partition of the property.  

It is important to know your rights under bankruptcy law If one of the spouse needs to file for chapter 7, or chapter 11 or chapter 13 bankruptcy and owns property with the other spouse under Community Property Ownership.  

Other forms of ownership in a real property included.

·         Joint Tenancy:  ownership of an undivided interest in real property, like Community property it is undivided, however the parties that accept to the Joint Tenancy do not have to be married.  Under Joint tenancy parties are able to end the joint tenancy via sale of their interest to another party.  What is left is a tenancy in common between the new party and the parties that are remaining. 

·          Tenancy In Common:   is an undivided ownership of property.  Each party owns a share of the  undivided property.  However there is no right of survivorship as in a Joint Tenancy or Community Property.  That is if one of the parties that owns a share dies his property does not revert to the other owners but is passed on intestate or via his will.

Real estate law and bankruptcy law are difficult and often complicated areas of law to understand.  If you plan to file bankruptcy and own personal property and or real property it is advised for you to seek out and be advised by an attorney.  

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