A bankruptcy lawyer I know (one with a pretty good reputation), was complaining over a beer that the Chapter 7 court Trustee was "going after" his client's home.
He though he had asked all the correct questions ("Do you own a house? Have you ever owned a house? Are you married? Have you ever been married?) In each case, the client honestly replied "No."
Surprisingly, the home the Trustee was going after was the one whose title was solely in the name of the client's registered domestic partner!
California, like a great number of states, is a "community property state." That means that whatever assets have accumulated in a marriage (with some exceptions) are owned together by the husband and wife. California has extended property rights to same-sex couples who register as "domestic partners."
When considering property to list in a bankruptcy, the Trustee can have issues with a spouse or partner's real estate, even if the house was acquired before the marriage (or registered domestic partnership) or was acquired by a spouse (or partner) via inheritance (a notorious exception to the community property rule). For example, if a mortgage is paid during the marriage (community assets are used to build equity) or the couple pays someone to cut the grass (assets are used to maintain and repair the property), the spouse or partner has (at least a minimal) interest in the property.
A good rule in bankruptcy (beyond adding "registered domestic partner" to the list of questions about marital status) is to ask the client "Is there any real estate in any country on this planet that someone might think you have an interest in?"
It helps to anticipate potential problems before the bankruptcy petition is filed.
Filing a bankruptcy is usually regarded to be demanding. That's mainly because filing bankruptcy isn't quite typical as well as the bankruptcy laws keep changing. Therefore, to file a bankruptcy case one really should hire a bankruptcy lawyer. But, is discovering a bankruptcy lawyer near your neighbourhood that effortless?
ReplyDeletebankruptcy lawyers.com is here to guide you by means of the procedure by helping you come across a great Bankruptcy Lawyer to help take some of the weight off of the shoulders. First, our bankruptcy article section will provide you with the tips and tools you need to ease some of the confusion in the bankruptcy course of action. And then our attorney directory delivers you with listings with the best bankruptcy lawyers within your state and nation.
Demand for paralegals also is expected to grow as an expanding population increasingly requires legal services, especially in areas such as intellectual property, health care, international law, elder issues, criminal law, and environmental law.
ReplyDeleteSan Francisco Bankruptcy Attorney