Oil Royalties in Chapter 13 Bankruptcy
We had a Debtor come in today that has oil leases that he earns income off of each month. It is consistent income that he receives. I explained to him that if he filed a Chapter 7 bankruptcy, that the trustee take possession of the oil leases, sell the leases, and take any proceeds from the sale and divide it among all of his unsecured creditors.
The Debtors is currently deciding to file for Chapter 13, which means he could keep the oil leases and he would have to pay back to his unsecured debt the amount of the non-exempt property that he has left over from the oil leases that he has. The Debtor receives approximately $1,300 each month from these leases and doesn’t want to lose this income if he can help it.
The Debtor is currently back and forth between which chapter to file, Chapter 7 or Chapter 13. If you have any questions about Oil Royalties while in the process if filing bankruptcy, you can contact a bankruptcy attorney near you.
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