A joint tenancy is severed immediately upon the bankruptcy of one of the joint tenants.
When a transmission is presented by a licensed insolvency trustee (formerly a trustee in bankruptcy) affecting the interest of one of several joint tenants, title will issue from the transmission into the names of the trustee for an undivided interest in accordance with the legal requirement that joint tenants have equal interest. For example, if a property is held by two joint tenants, title will issue into the names of the trustee for an undivided one-half interest.
If a title is held by three or more joint tenants, and one is the bankrupt, the transmission by the licensed insolvency trustee (formerly called a trustee in bankruptcy) does not affect the joint tenancy between the remaining owners. For example, in the case of four joint tenants, the title would issue into the names of the trustee as to an undivided one-quarter interest and into the names of the three remaining parties as joint tenants of the remaining three-quarters interest.