Does Filing BK Severe Joint Tenancy to Tenancy in Common?

I enjoyed how this judge put it — The concept that the filing of a petition for relief severs a joint tenancy is evidently from the fantasy world of make believe or born as a result of wishful thinking. It is just not true. The debtor does not transfer his title to 541 property of the estate but holds his title subject to the exercise by the trustee of [the trustee's] rights to sell, use or lease such property by appropriation under the “avoidance” or “strong arm” sections as typified by Sections 542, 543, 544, 545, 546 and 547 of the 1978 Act, as amended. . . . The trustee has no title to property of the estate until he elects to take affirmative action and proceedings are had or orders made. SeeĀ Whittington v. Gilbralter Sav. & Loan Assoc. (In re Spain), 55 B.R. 849, 854 (Bankr. N.D. Ala. 1985).

As for this Circuit, I’ve found cases that appear to same the same and the opposite.

Leave a Reply


2 + = five