This can come up in many different circumstances: – a parent or guardian acting as custodian on a minor’s bank account, – an adult son or daughter on the deed of their parent’s home for estate planning purposes, – a friend borrowing another’s vehicle for transportation.
This is the situation where property is owned by another but within your possession or control. These scenarios are not uncommon.
When you file for bankruptcy, an estate is created that is comprised of all of your legal and equitable interests. Sometimes these interests are easy to identify, like your home, car, or bank account. Others are less obvious, like your right to recover on a claim against someone else, or the tax refund the IRS owes you.
Is the Property that Belongs to Another a Part of Your Bankruptcy Estate?
Property that belongs to another that you possess or control, isn’t necessarily part of your bankruptcy estate. But this question allows the court and the trustee to identify and explore these other arrangements to determine if they give rise to a legal or equitable interest that is part of your bankruptcy estate.
Some arrangements can be problematic for your bankruptcy case and the other person involved. Being listed as joint owner of an asset when the property is not meant to be yours right now is one of these potentially problematic situations. Because of the risk involved, it’s critically important to discuss all of these details with your bankruptcy attorney so that he or she can explain your rights and help create an action plan for addressing any potential problems.
Holding Property For Another Doesn’t Have To Hurt Your Bankruptcy Case
If you are facing debt problems, it’s important for you to talk with an experienced bankruptcy attorney soon and definitely before making any changes to your current situation. “Taking your name off” of an asset doesn’t normally resolve the problem, but can actually make things worse for your bankruptcy case.
If, on the other hand, you are not already involved in this type of situation, it may be best to steer clear from it so that you don’t cause trouble for your bankruptcy case or the other person and their property.
Bankruptcy is a complex area of law that is best handled by a qualified bankruptcy attorney. If you’re interested in learning how bankruptcy may help you, contact me, Attorney Nancy Martin, online or by phone at (636)536-5355. The initial consultation is free of charge. Don’t hesitate, call today.
For more posts on the letter “H”, please see below:
Harassment by Creditors
Harassment by Creditors
Home is Where the Heart Is
Home: Can the Trustee Take It?
Homeowner’s Association Dues
Honest but Unfortunate Debtor
Honesty (and Fraud Avoidance)
Household Median Income
How Much is Your Home Worth?
Save My House
[learn_more caption=”St. Louis Bankruptcy Attorney Nancy Martin” state=”open”] Nancy Martin is a St. Louis, Missouri attorney and consumer bankruptcy lawyer who helps people file Chapter 7 and Chapter 13 Bankruptcy. To find out more about bankruptcy and other debt relief alternatives, contact us online or by phone at (636) 536-5355. The office is located at 150 North Meramec Avenue, Suite 400, St. Louis, Missouri 63105.
We help people in St. Louis, St. Charles, Chesterfield, Ballwin, Creve Coeur, Maryland Heights, Ladue, Manchester, Kirkwood, Webster Groves, Wildwood, Bridgeton, Fenton, Eureka, Ellisville, Des Peres, Clarkson Valley, and Frontenac. This includes the municipalities within St. Louis County, St. Charles County, Jefferson County, Franklin County, Warren County, and Lincoln County.[/learn_more]