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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 17522
Experience:  B.A.; M.B.A.; J.D.
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Are mineral rights in a revocable living trust set up by my

Customer Question

Are mineral rights in a revocable living trust set up by my parents, shared with my sibling, an asset in jeopardy if I were to file a chapter 7 bankruptcy? My mother recently passed away and left mineral rights that produce a modest income in a trust.
My sibling and I are named as beneficiaries. I was wondering that since I do not have exclusive access to these mineral rights and this is a shared asset that would be very difficult to divide up even if I wanted to, would I be putting the mineral rights at
risk if I were to file a chapter 7 bankruptcy? In other words, can I file a chapter 7 bankruptcy without screwing my sibling?
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  Phillips Esq. replied 1 year ago.
Hello: This is PhillipsEsq. I am a licensed Attorney and I will be assisting you today.
Are mineral rights in a revocable living trust set up by my parents, shared with my sibling, an asset in jeopardy if I were to file a chapter 7 bankruptcy? My mother recently passed away and left mineral rights that produce a modest income in a trust.
My sibling and I are named as beneficiaries. I was wondering that since I do not have exclusive access to these mineral rights and this is a shared asset that would be very difficult to divide up even if I wanted to, would I be putting the mineral rights at
risk if I were to file a chapter 7 bankruptcy? In other words, can I file a chapter 7 bankruptcy without screwing my sibling?

Response: Regrettably, not. Your interest in the mineral rights may be jeopardy if you are not able to claim it as an exempt asset. The bankruptcy would expect you to pay the value of the interest to the Trustee to be distributed to your creditors. For more information on exemptions, click on the link below:
http://www.nolo.com/legal-encyclopedia/arizona-bankruptcy-exemptions.html