A declaration of trust agreement was executed by four parties A,B,C and D to act as trustees for party E as joint tenants for a family property in 1975.
At this point Parties A,B,C and D had a legal (registered on title) and a beneficial interest and Party E only had a beneficial interest.
Upon Bankruptcy the joint tenancy is severed.
Party D is declared bankrupt in 2019 and their 20% share now vests with the Trustee in Bankruptcy (TIB).
Party A negotiates and settles the matter with TIB and pays them $x for 20% share, the property.
Does the event of bankruptcy sever all joint tenancy arrangements between parties?
Is it only the 20% share of the bankrupt joint tenant that is severed which means that 20% is held as tenants in common whilst the remaining 80% share is held as joint tenants ?
Or is the joint tenancy now completely severed and the property is held as tenants in common with all parties having an equal share i.e. 20 % to dispose of as they see fit?
At this point Parties A,B,C and D had a legal (registered on title) and a beneficial interest and Party E only had a beneficial interest.
Upon Bankruptcy the joint tenancy is severed.
Party D is declared bankrupt in 2019 and their 20% share now vests with the Trustee in Bankruptcy (TIB).
Party A negotiates and settles the matter with TIB and pays them $x for 20% share, the property.
Does the event of bankruptcy sever all joint tenancy arrangements between parties?
Is it only the 20% share of the bankrupt joint tenant that is severed which means that 20% is held as tenants in common whilst the remaining 80% share is held as joint tenants ?
Or is the joint tenancy now completely severed and the property is held as tenants in common with all parties having an equal share i.e. 20 % to dispose of as they see fit?
