Our rights are tied up in our mortgage. Our home is not going to be included in the bankruptcy. Could we loose our mineral rights. We live and own the rights in Colorado.
I think you should ask this question of a bankruptcy attorney. My opinion, is that if it's just the mineral rights under the home and they have not been severed from the surface, I think it logical that you would keep them.
That’s what I was thinking but the way the system is you never no. And with the market being down our royalties don’t add up to much. Thanks for the information. Oh by the way our bankruptcy lawyer did not have n newer either.
Jim:
I agree that a bankruptcy attorney, preferably one based in Colorado, would be able to assist you this matter. Each individual State has laws in place dealing with bankruptcy matters.
Whatever you do, don't believe a discussion forum because someone says what you want to hear. Find out for sure what your state bankruptcy law says. In our state, mineral rights are separate from property ownership.
PK, I thought that mineral rights in Tx. always went with the surface unless severed?
Once you receive a royalty check it may change the picture as far as bankruptcy goes. In Texas, there is a distinction between mineral rights and royalty rights. Not so clear in Colorado.
http://www.landman.org/docs/educational-material-%28pdf%29/mineral-v-royalty-aapl-paper.pdf
Here's another one on mineral rights, surface rights, and royalty payments.
It's complex and even the lawyers writing these papers say they are not a substitute for legal council. The point is that every state is different, and general advice may leave someone in for a surprise.
Thanks for the information. I will be contacting a lawyer in Colorado that knows the laws in Colorado.
If your mineral rights are part of your "exempt" property as you say, meaning not part of the bankruptcy process, then the only way that I see you MIGHT lose your mineral rights is if you default on your mortgage.