Property Ownership

Two Washington residents hold title as joint tenants. One of them files for bankruptcy. What happens to the joint tenancy?

AThe joint tenancy continues unchanged
BThe bankruptcy trustee takes the debtor's share, severing the joint tenancy✓ Correct
CThe non-debtor spouse automatically receives the entire property
DThe joint tenancy converts to a tenancy by the entirety

Explanation

When a joint tenant files for bankruptcy, the bankruptcy trustee acquires the debtor's interest. This involuntary transfer severs the joint tenancy, converting it to a tenancy in common between the trustee and the non-debtor joint tenant.

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