Legal Requirements

There are several legal requirements related to bankruptcy, insurance, property and leases. In the case o bankruptcy, all the assets and property of is liquidated under the United States Code and it is distributed in the obligation proportion to the creditors or the people who have claim on the bankrupted people or organizations. The eligibility is also determined for filing under the bankruptcy as to file under bankruptcy code the debtor may be a partnership, corporation, individual or any other business entity (United States Court, 2013).

The legal requirements for insurance are that insurance should insure about the claim of an individual or organization for protecting of a particular asset or other things (Insurance and the Legal Process). Similarly, the property should be determined on the basis of ownership. If a single person has a property and one person has claim on that person then in case of liquidation or bankruptcy, the property owned by first person will be used to settle the claims of creditors. Under the leases, the custom law is used to locate the real asset or property. A rental agreement is essential to made for resolving future conflicts. Similarly, the periodic tendency should be there with an effect of possession on asset or property taken under lease (Property Beyond Pty Ltd, 2010).

Solution for Scenario

In the given situation, if common tendency exists then the creditor A and creditor B can recover their claims from Lacy and Liam in this situation. It is because under common tendency, each tenant has separate interest and it could be transfer to other person easily. Lacy and Liam both have fractional interest and they can transfer this interest to their respective creditors without affecting the interest of each other (Hepburn, 2001). But this may influence the partnership of both as they have mutual understanding and the inclusion of another person can influence this understanding negatively.

Another type of co-tendency is joint tendency, in which creditor C can recover his claim from Lacy and Liam. It is because in joint tendency each tenet has equal fraction and in the obligation to C, both have equal fraction and also in the recreational vehicle. So, creditor C can recover his claim from the recreational vehicle as both partners have obligation to pay to Creditor C (Dixon, 2002). But if the fraction in asset and loan is different then it may create some ethical issues for both.

References

• Dixon, M. (2002). Principles of Land Law (4th ed.). USA: Routledge.
• Hepburn, S.J. (2001). Principles of Property Law (2nd ed.). USA: Routledge.
• Insurance and the Legal Process. (n.d.). retrieved from: http://www.bested.com/studyguides/CACONMIL-ILP/CACONMIL-ILP.pdf
• Property Beyond Pty Ltd. (2010). Lease essentials- The requirements for a valid lease. Retrieved from: http://www.propertybeyond.com.au/publications/124-blank23
• United States Court. (2013). Retrieved from: http://www.uscourts.gov/Viewer.aspx?doc=/uscourts/FederalCourts/BankruptcyResources/bankbasics2011.pdf