Legal Question in Bankruptcy in West Virginia

Re: Bankruptcy

Any person considering bankruptcy or who may be affected by a bankruptcy ought to consult a lawyer to allow disclosure of all detail and secure understanding of the implications and results. Generally speaking, the following are observations of the limited factual situation. Ownership of real estate is not changed by bankruptcy. The creditor will keep its lien on the whole of the property and retain the right to collect the debt from any person who does not file a bankruptcy. Thus the non-filer has the right to keep up the payments and pay off the debt and keep his/her interest. The problem is that any equity from payments or appreciation goes to the ownership of both. If a co-owner wants to keep the real estate it is necessary to get a quit claim deed. One could even make a payment to the co-owner to secure full legal title. The transfer, however, may constitute a breach of the lien document and require re-finance in the new owner's name. The filing of bankruptcy does not "remove" either co-owner's name from title to real estate nor does it discharge the non filer from the debt. If there was equity (sale value higher than the debt) then the trustee in bankruptcy could sell the entire property, but would have to give 1/2 of the net proceeds to the co-owner and the other 1/2 could be used to pay creditors.