November 12, 2015

Protecting your home in a bankruptcy can be a big concern. If there is too much equity to qualify the house as exempt, the trustee can sell the house and use the un-exempt proceeds to pay creditors. Michigan is one of the states that allows for a special type of joint tenancy between a husband and a wife called a tenancy by the entirety. In a bankruptcy context, this may allow a couple to protect their home by giving them a much larger exemption amount, avoiding this equity problem.

marital home

A recent court case even allowed the entireties exemption for a debtor whose husband had died after the filing of the case, eliminating the tenancy by the entirety.

In the case of in re Hamacher, the Court held that the entire value of the home could be protected because at the time of the bankruptcy filing, the property was still held under this special type of joint tenancy.

Timing is critical in these matters. If you are facing foreclosure or struggling to stay current on your mortgage, you should call to schedule a risk-free consultation with one of our experienced attorneys.

Michael A. Spencer, Esq.

Associate Attorney



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