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.
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.