Royalty Income from Gas/Oil Lease

[perhaps_1000]

How is royalty from gas/oil lease treated in chapter 7 bankruptcy? Can leases be forced into liquidation? Any suggestions on how to protect? We are semi-retired and becoming disabled. This and Social Security are our only income. Thanks for help.

[JeepMom]

Never mind I read wrong. Income is income.

[lrprn]

How is royalty from gas/oil lease treated in chapter 7 bankruptcy? Can leases be forced into liquidation? Any suggestions on how to protect? We are semi-retired and becoming disabled. This and Social Security are our only income. Thanks for help.

This webpage is very 'lawyerly' but it looks like the answer to your lease question is yes, under specific circumstances the trustee can take over your lease and royalties in Ch 7 if they do so within 60 days of filing - http://www.lawdog.com/bkrcy/bkmd2.htm .

This is an excellent question to ask an experienced bk lawyer. Most have a free half-hour to hour consultation - it's a great opportunity to ask questions like yours and explore whether bankruptcy is the right thing for your specific circumstances. Make appointments with 3-4 in your area - you'll learn about all your options that way and it won't cost anything. Keep us posted on what you find out, and good luck!