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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2870
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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My husband has a judgement from a large bank against him for

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My husband has a judgement from a large bank against him for business loans he personally guaranteed. (We are so far avoiding bankruptcy) I was told we could sell our house without the risk of bank attaching proceeds if we own it "in entirety" and proceeds from sale were put into another joint asset "in entirety". Is this legally true or something that could potentially be argued (and lost) in court?
Does Michigan law consider a deed titled with our names followed by, "husband and wife" the same as "in entirety" legally?
Can the proceeds be transferred to any other type of asset besides property if titled "in entirety" under the same principle, (ie, savings account, CD's, Mutual funds), or does it only apply to property?
Michigan caselaw states: Property held as tenancy by the entirety may be exempt against debts owed by only one spouse. Therefore, the home should be protected from the judgment creditor if it is held as tenancy by the entirety (ask your real estate lawyer who you used when you purchased the home) it must specifically state tenancy by the entirety (that is different than Joint tenancy) If it says entirety, that's strong evidence that it is tenancy by the entirety though. If just says husband and wife, that is not good enough.

Once you sell, you lose the exemption, there is no exemption for proceeds of the sale, and they are subject to turnover in a suit, or liquidation in bankruptcy. The principle of "tenancy by the entirety" only applies to real property, and not proceeds or other assets, unfortunately. Good luck.

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