Central District Consumer Bankruptcy Attorney's Association

3 Section 101(41) of the Bankruptcy Code defines aperson to include a corporation. In turn, Section101(9) of the Bankruptcy Code defines corporation toinclude only a Law Office of Catherine Christiansen
Certified Specialist, Bankruptcy Law, The State Bar of California Board of Legal Specialization.
On Monday, February 23, 2015 1:20 PM, Catherine Christiansen wrote:
For a trust to be a debtor it must be a "Business Trust" .
Law Office of Catherine Christiansen
Certified Specialist, Bankruptcy Law, The State Bar of California Board of Legal Specialization.
On Monday, February 23, 2015 12:07 PM, "jsmith@cgsattys.com [cdcbaa]" wrote:
Settlor/Trustor of a Revocable Trust dies after an illness.ty in Trust is a residence with equity. Primary bneficiary is also Trustee after death of Settlor.Primary beneficieary/trustee does not want the property because it will screw up his Medi-Cal and other government benefits and thinks the property should go to the next in line beneficiary anyway.He is willing to, and per trust has the right to disclaim his interest as a beneficiary and give the property to the next in line beneficiary.Apparently the Settlor/Trustor, due to his illness, stopped making the mortgage payments before he died. Trustee just found out the property is set for sale in two weeks,and the bank won't postpone so the Trustee can sell the property, pay the bank, and give the money to thenext in line beneficiary. Trustee and next in line beneficiary do not want a personal BK on their record(s).My plan:Call the IRS and get a TIN for the now non-revocable Trust and file a chapter something for it to buy the time to sell property.I see nothing in 109 that says a trust cannot be a debtor, but a debtor must be a person. "Person"is defined in 101(41), (i.e. an "individual", "partnership" or "corporation").I don't see a definition of "individual".Under 101(9) a "corporation" includes a "business trust" whateverTHAT or an "association having a power or privelege that a private corporation, but not an individual or partnership posesses" whatever THAT is. if a non-revocable trust can be a Debtor?ThanksJeff Smit
The post was migrated from Yahoo.

For a trust to be a debtor it must be a "Business Trust" .
Law Office of Catherine Christiansen
Certified Specialist, Bankruptcy Law, The State Bar of California Board of Legal Specialization.
On Monday, February 23, 2015 12:07 PM, "jsmith@cgsattys.com [cdcbaa]" wrote:
Settlor/Trustor of a Revocable Trust dies after an illness.ty in Trust is a residence with equity. Primary bneficiary is also Trustee after death of Settlor.Primary beneficieary/trustee does not want the property because it will screw up his Medi-Cal and other government benefits and thinks the property should go to the next in line beneficiary anyway.He is willing to, and per trust has the right to disclaim his interest as a beneficiary and give the property to the next in line beneficiary.Apparently the Settlor/Trustor, due to his illness, stopped making the mortgage payments before he died. Trustee just found out the property is set for sale in two weeks,and the bank won't postpone so the Trustee can sell the property, pay the bank, and give the money to thenext in line beneficiary. Trustee and next in line beneficiary do not want a personal BK on their record(s).My plan:Call the IRS and get a TIN for the now non-revocable Trust and file a chapter something for it to buy the time to sell property.I see nothing in 109 that says a trust cannot be a debtor, but a debtor must be a person. "Person"is defined in 101(41), (i.e. an "individual", "partnership" or "corporation").I don't see a definition of "individual".Under 101(9) a "corporation" includes a "business trust" whateverTHAT or an "association having a power or privelege that a private corporation, but not an individual or partnership posesses" whatever THAT is. if a non-revocable trust can be a Debtor?ThanksJeff Smit
The post was migrated from Yahoo.