Sunday, April 13, 2014

Property Excluded from Bankruptcy Estate - Bare Legal Title

Certain interests in property are not included in a bankruptcy estate. The bankruptcy code provides that property in which the debtor only holds "legal title and not an equitable interest"  becomes part of the estate only to the "extent of the debtor's legal title to such property, but not to the extent of any equitable interest in such property that the debtor does not hold."

Generally that would mean that property in which a person only holds bare legal title and no "equitable" interest would not be included in a bankruptcy estate.