Central District Consumer Bankruptcy Attorney's Association

That's a really good thought. Thank you, Jeff. I'll do some research on that and see if the deed is made good when she reaches majority.
I'm hoping my client will let me fight this one, which I'll do without compensation if they allow it. Trustee's counsel already offered a settlement if Mom will refinance the house. It pays far less than all the creditors and it is based upon a 15 year repayment that is pricey in the long run, but if they can get that 3% money then the monthly payments are low.
Steve

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Steve:
Without doing any research...can you add another bullet to your gun when dealing with the trustee along these lines?:
Deed to a 17 year old invalid and thus void as she is not legally competent to own realty in California on the date of the purported transfer to her. Are their requirements that a minor not be vested in ownership of realty in CA. I'd look that up.
Just a thought. The more arguments you have, the more your respected trustee counsel will think about a resolution.
Jeff Smith
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> I have a client who is on title with her mother since she was 17, a couple decades ago. She never paid a penny for the house and is only on title for when mom dies. Originally I was only going to file her husband, but then after reading 11 U.S.C. 541(d) I thought since she had only bare legal title there would be no issue.
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> However, I got a call today from Trustee's counsel, who I know well and respect, who tells me he can do so under 11 U.S.C. 544(a)(3). Trustee only shares legal title, not equitable title, but Trustee attorney says that's enough.
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> 11 U.S.C. 544(a)(3)
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> (a) The trustee shall have, as of the commencement of the case, and without regard to any knowledge of the trustee or of any creditor, the rights and powers of, or may avoid any transfer of property of the debtor or any obligation incurred by the debtor that is voidable by-
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> (1) omitted
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> (2) omitted
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> (3) a bona fide purchaser of real property, other than fixtures, from the debtor, against whom applicable law permits such transfer to be perfected, that obtains the status of a bona fide purchaser and has perfected such transfer at the time of the commencement of the case, whether or not such a purchaser exists.
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> I'm not getting his point and still in shock. Has anyone run across this issue before?
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> Steve
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> Law Offices of Steven B. Lever
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> > Steven B. Lever
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> >( Tel. (562) 436-5456 ext. 6470
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> >( Fax (800) 360-5161
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> >* sblever@...
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> > www.leverlaw.com
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I can understand that trustee has BFP status, but the daughter still has no beneficial interest in the property under 541. The trustee under 544(a)(3) gets the same rights that a BFP could would have under state law. Thus the trustee is senior to the to any unrecorded or otherwise unperfected liens. The case cited by Ken involves a third party who was claiming a constructive trust on some part of RP that the debtors owned. The court found that 544(a)(3) applied because the trustee had no notice of the TP claim to the constructive trust, so his position was superior.
The facts in Steves case are completely different. The trustee is still junior to moms 100% beneficial interest in the property. The trustee cannot sell the property under 363(h) because there would zero benefit to the estate unless they show daughter to have some beneficial interest in the property.
Many times trustees take positions that may have no merit to extract something from the debtor or co-owner. This seems to me to be one of those cases. I will be interested to hear others thoughts on the issue.
If you have any questions or concerns please contact me.
Pat
Patrick T. Green
Attorney at Law
1010 E. Union St. Suite 206
Pasadena, CA 91106
Tel: 626-449-8433
Fax: 626-449-0565
Email: pat@fitzgreenlaw.com

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Get mom to refi and pay child's debts. This will keep tee from selling.
Sent from my iPhone
On Jan 25, 2012, at 11:58 AM, "Steven B. Lever" wrote:
> I have a client who is on title with her mother since she was 17, a couple decades ago. She never paid a penny for the house and is only on title for when mom dies. Originally I was only going to file her husband, but then after reading 11 U.S.C. 541(d) I thought since she had only bare legal title there would be no issue.
>
>
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> However, I got a call today from Trustees counsel, who I know well and respect, who tells me he can do so under 11 U.S.C. 544(a)(3). Trustee only shares legal title, not equitable title, but Trustee attorney says thats enough.
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>
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> 11 U.S.C. 544(a)(3)
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> (a) The trustee shall have, as of the commencement of the case, and without regard to any knowledge of the trustee or of any creditor, the rights and powers of, or may avoid any transfer of property of the debtor or any obligation incurred by the debtor that is voidable by
>
> (1) omitted
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> (2) omitted
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> (3) a bona fide purchaser of real property, other than fixtures, from the debtor, against whom applicable law permits such transfer to be perfected, that obtains the status of a bona fide purchaser and has perfected such transfer at the time of the commencement of the case, whether or not such a purchaser exists.
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> Im not getting his point and still in shock. Has anyone run across this issue before?
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> Steve
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> Law Offices of Steven B. Lever
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> > Steven B. Lever
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> >( Tel. (562) 436-5456 ext. 6470
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> >( Fax (800) 360-5161
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> >* sblever@leverlaw.com
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> > www.leverlaw.com
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> >
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Get mom to refi and pay child's debts. This will keep tee from selling. Sent from my iPhoneOn Jan 25, 2012, at 11:58 AM, "Steven B. Lever" <sblever@leverlaw.com> wrote:

(1) omitted(2) omitted (3) a bona fide purchaser of real property, other than fixtures, from the debtor, against whom applicable law permits such transfer to be perfected, that obtains the status of a bona fide purchaser and has perfected such transfer at the time of the commencement of the case, whether or not such a purchaser exists. Im not getting his point and still in shock. Has anyone run across this issue before? Steve
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Another example of the unintended consequences of not preparing a proper estate plan. These people did this as a poor substitute for a revocable trust. I would hate to the professional who advised them to do this, rather than an estate plan.
Desiree Causey, Esq.
Law Office of Desiree Causey
17011 Beach Blvd., Suite 900
Huntington Beach, CA 92647
714-375-6663
714-908-7646 (fax)

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I have been warning about this for some time. There is a 9th Cir case which says 544 overrules 541. Not on the computer, but if u search the two sections together it should come up. D something.
D
Sent from my iPhone
On Jan 25, 2012, at 11:58 AM, "Steven B. Lever" wrote:
> I have a client who is on title with her mother since she was 17, a couple decades ago. She never paid a penny for the house and is only on title for when mom dies. Originally I was only going to file her husband, but then after reading 11 U.S.C. 541(d) I thought since she had only bare legal title there would be no issue.
>
>
>
> However, I got a call today from Trustees counsel, who I know well and respect, who tells me he can do so under 11 U.S.C. 544(a)(3). Trustee only shares legal title, not equitable title, but Trustee attorney says thats enough.
>
>
>
> 11 U.S.C. 544(a)(3)
>
> (a) The trustee shall have, as of the commencement of the case, and without regard to any knowledge of the trustee or of any creditor, the rights and powers of, or may avoid any transfer of property of the debtor or any obligation incurred by the debtor that is voidable by
>
> (1) omitted
>
> (2) omitted
>
> (3) a bona fide purchaser of real property, other than fixtures, from the debtor, against whom applicable law permits such transfer to be perfected, that obtains the status of a bona fide purchaser and has perfected such transfer at the time of the commencement of the case, whether or not such a purchaser exists.
>
>
>
> Im not getting his point and still in shock. Has anyone run across this issue before?
>
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> Steve
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>
>
>
>
> Law Offices of Steven B. Lever
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> >
>
> > Steven B. Lever
>
> >( Tel. (562) 436-5456 ext. 6470
>
> >( Fax (800) 360-5161
>
> >* sblever@leverlaw.com
>
> > www.leverlaw.com
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> >
>
>
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I have been warning about this for some time. There is a 9th Cir case which says 544 overrules 541. Not on the computer, but if u search the two sections together it should come up. D something. DSent from my iPhoneOn Jan 25, 2012, at 11:58 AM, "Steven B. Lever" <sblever@leverlaw.com> wrote:

(1) omitted(2) omitted (3) a bona fide purchaser of real property, other than fixtures, from the debtor, against whom applicable law permits such transfer to be perfected, that obtains the status of a bona fide purchaser and has perfected such transfer at the time of the commencement of the case, whether or not such a purchaser exists. Im not getting his point and still in shock. Has anyone run across this issue before? Steve
The post was migrated from Yahoo.

I have a client who is on title with her mother since she was 17, a couple decades ago. She never paid a penny for the house and is only on title for when mom dies. Originally I was only going to file her husband, but then after reading 11 U.S.C. 541(d) I thought since she had only bare legal title there would be no issue.
However, I got a call today from Trustee's counsel, who I know well and respect, who tells me he can do so under 11 U.S.C. 544(a)(3). Trustee only shares legal title, not equitable title, but Trustee attorney says that's enough.
11 U.S.C. 544(a)(3)
(a) The trustee shall have, as of the commencement of the case, and without regard to any knowledge of the trustee or of any creditor, the rights and powers of, or may avoid any transfer of property of the debtor or any obligation incurred by the debtor that is voidable by-
(1) omitted
(2) omitted
(3) a bona fide purchaser of real property, other than fixtures, from the debtor, against whom applicable law permits such transfer to be perfected, that obtains the status of a bona fide purchaser and has perfected such transfer at the time of the commencement of the case, whether or not such a purchaser exists.
I'm not getting his point and still in shock. Has anyone run across this issue before?
Steve
Law Offices of Steven B. Lever
>
> Steven B. Lever
>( Tel. (562) 436-5456 ext. 6470
>( Fax (800) 360-5161
>* sblever@leverlaw.com
> www.leverlaw.com
>

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