QUESTION

Spouse Filing for Bankruptcy - What happens to "Joint in Entirety" property?

Asked on Nov 20th, 2017 on Bankruptcy - Michigan
More details to this question:
We are in Michigan and we were debt free on our main home. Our main home is owned "Jointly in entirety". About 4 years ago we decided to take out a Mortgage and buy several investment properties with the proceeds. All 3 properties were placed into Joint in Entirety ownership on the deeds at time of purchase and have remained that way. One spouse is the main breadwinner and has had a recent loss of income of nearly $1,000.00 per month and can no longer pay all of his monthly expenses. The debt that he has from an old legal issue and his personal credit cards is sufficient to file for Chapter 7 in Federal Court. The question is: Can the trustee force the sale of the investment properties that were bought with Joint In Entireties money and that have always been Jointly owned? I've tried doing some research on my own and I see one example in Michigan where Joint In Entirety property was taken but it was only because it was the IRS. I see none other than that.
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1 ANSWER

Administrative Law Attorney serving Ann Arbor, MI at David J. Hutchinson
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If only one spouse files, entirety property is exempt in Michigan, except to the extent of joint debts. If there are joint debts, be careful and consult a good local attorney. Good luck.
Answered on Nov 21st, 2017 at 6:58 AM

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