Is property with equity owned by both myself and my wife exempt in bankruptcy if only I file against my debt?

I live in Michigan and all the debt is in my name. My wife and I both lost our jobs and obviously can’t keep up with our bills. We own a piece of land in both of our names with some equity in it. If I declare bankruptcy if the equity protected because she is a owner as well as i.

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Posted January 12th, 2010 in File Bankruptcy Yourself. Tagged: , .

5 comments:

  1. Faughorn:

    Depends on how the property is deeded. If you own it "tenants by the entireties" then the property may not be seized by the bankruptcy court unless you BOTH file.

    If the property is deeded as joint tenants or anything other than by the entireties then there is a danger you may lose it. If you have low equity then you may be able to protect it through the homestead exemptions in the state. You would only need to protect half the equity because they cannot take your wife’s equity if she does not file.

    For example, lets say that your equity in the property is $6000, you would only need to file a homestead deed to protect $3000 of that because the other $3000 of equity belongs to your wife.

    January 12th, 2010 at 11:48 am
  2. amontef:

    I found a website I am including that gives a lot of information, as well as phone numbers of attorneys you may be able to call and ask.
    I hope it helps! Best of luck to you.

    January 12th, 2010 at 11:48 am
  3. HEATHER:

    Is this your home? If it is not, and is just an investment property you may be forced to sell it. The court will not let you have property X sitting over there with $20K of equity (or whatever) while you claim that you can not pay your current bills. The court will tell you to sell the property and use the proceeds to get current on your debts.

    January 12th, 2010 at 11:48 am
  4. AMY M:

    Bankruptcy is the last resort you should think about,there are still a lot of way to get out of debt,I get substantial help from here

    http://www.DebtFreetips.info

    when I am in a similar closing bankruptcy situation.

    January 12th, 2010 at 11:48 am
  5. Dark Green Money:

    Much depends on how much equity there is and how the deed is set up.
    Ask your attorney.

    January 12th, 2010 at 11:48 am

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