How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ellen Your Own Question
Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
9968427
Type Your Bankruptcy Law Question Here...
Ellen is online now
A new question is answered every 9 seconds

My wife and I have a joint debt on investment property. If

Resolved Question:

My wife and I have a joint debt on investment property. If I file chapter 7 separately, can the bank place a lien on our house that we occupy by tenancy by the entirities in North Carolina?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 5 years ago.

WebLaw :

*Due to rules of your state bar or mine, nothing herein is intended as legal advice, only intended as general information to better help yourself.*

WebLaw :



So sorry to hear of this dilemma. If my answer is not clear to you, please ask me for clarification by using the reply button.

Unfortunately property that is owned by tenancy of the entireties may be attached for the benefit of creditors of both spouses-- therefore since you have joint debt on the investment property, the bankruptcy trustee may attach property held by tenancy by the entireties that is not otherwise exempt

WebLaw :


Please use the REPLY button if you have any questions concerning my answer. Otherwise please click ACCEPT so that I am paid by the site for answering.

Customer:

My question relates, not to the trustee, but to the creditor. Can the bank place a lien on the house if I file separately?

WebLaw :

no creditor can file a lien while you are in a bankruptcy. Before the bankruptcy, the bank may file a lien on the house

WebLaw :


Please use the REPLY button if you have any questions concerning my answer. Otherwise please click ACCEPT so that I am paid by the site for answering.

Customer:

It's still not clear. Before the lien is placed on the house, and after I am discharged, can the bank then place a lien on the house? If I file separately before a lien is placed on the house, is the bank forever prevented from placing a lien on the house?

WebLaw :

Yes. However it is important to note that if the value of your home exceeds the amount of your bankruptcy exemption, it is likely that the bankruptcy trustee would liquidate your home in the chapter 7 bankruptcy itself

Ellen and 3 other Bankruptcy Law Specialists are ready to help you