Articles Tagged with rental property

underwood-rents-recoverable-partition-action-300x300In a partition action the sale proceeds are distributed based on a party’s interest in the property. (Code Civ. Proc., § 872.810.) This includes parties’ ownership interest as well as what improvements they made on the property or other factors. (Code Civ. Proc., § 873.220.) In pursuing partition by sale, division of proceeds may raise questions for owners as to what they can collect. Depending on how the property was used, one co-owner may have a claim against the other for rent.

Why a co-owner may claim they are owed rents:

Under the partition statutes, the court may allow an accounting or other adjustments to compensate co-owners under principles of fairness. (Code Civ. Proc., § 872.140.) Under these compensatory adjustments one co-owner may claim they are owed rents by the other co-owner. 

3172023-300x300Generally, a bankruptcy proceeding acts as a stay on the collection of debt as well as any acts needed to be taken to enforce a debt. The rules regarding partition actions in bankruptcy proceedings are codified in the Code of Civil Procedure section 715.050. Typically, whether a partition action is exempt from a bankruptcy proceeding depends on when the bankruptcy proceeding was initiated. Therefore, a bankruptcy proceeding will not necessarily prevent a person from recovering possession of premises for which they have the right to recover possession. 

If a writ of possession was not yet obtained prior to the filing of a bankruptcy proceeding, then a tenant may be able to stop the execution of a writ of possession initially by initiating a bankruptcy proceeding. Therefore, timing is an essential element in determining whether a partition action is exempt from a bankruptcy proceeding. At Underwood Law Firm, our attorneys are more than familiar with bankruptcy proceedings and their impact on partition actions. 

Code of Civil Procedure section 715.050 

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