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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 18357
Experience:  B.A.; M.B.A.; J.D.
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I would appreciate your help. Three creditors have filed

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I would appreciate your help. Three creditors have filed an involuntary Chapter 7 against me individually. I am disputing the case and therefore I am in the "stub period" before the judge grants relief to the three creditors. My wife is not filing bankruptcy and the debts are only my debts. I own my house with my wife as tenants by the entirety. I have a terminal illness and understand that Rule 1016 allows a chapter 7 to continue after my death. My questions are as follows: If I die before the court grants relief to the creditors, does my house automatically revert to my wife (under the tenants by the entirety rules) without the ability of the creditors to go after the house or can the post-death trustee sell my house under 363 of the code? In other words, does the transfer of title to my wife under the tenants by the entirety rules supersede the bankruptcy before relief is granted? Second, what happens to the house if I die after relief is granted to the creditors? I am concerned about my mortality in light of by health and the involuntary 7 and would appreciate your help. Third, if the house does go over to my wife upon by death, what happens to a creditor lien that is on the house for a debt owed by me only. Thank you for your help.

Hello: This is PhillipsEsq. I am a licensed Attorney and I will be assisting you today.


I would appreciate your help. Three creditors have filed an involuntary Chapter 7 against me individually. I am disputing the case and therefore I am in the "stub period" before the judge grants relief to the three creditors. My wife is not filing bankruptcy and the debts are only my debts. I own my house with my wife as tenants by the entirety. I have a terminal illness and understand that Rule 1016 allows a chapter 7 to continue after my death. My questions are as follows: If I die before the court grants relief to the creditors, does my house automatically revert to my wife (under the tenants by the entirety rules) without the ability of the creditors to go after the house or can the post-death trustee sell my house under 363 of the code?



Response 1: The house becomes your spouse's as the sole survivor.


In other words, does the transfer of title to my wife under the tenants by the entirety rules supersede the bankruptcy before relief is granted?


Response 2: Yes.


Second, what happens to the house if I die after relief is granted to the creditors?



Response 3: The same. Your spouse is still the sole owner of the property.


I am concerned about my mortality in light of by health and the involuntary 7 and would appreciate your help. Third, if the house does go over to my wife upon by death, what happens to a creditor lien that is on the house for a debt owed by me only. Thank you for your help.



Response 4: The lien stays on the property until the property is sold. At that time the lien must be paid off after the mortgage, other senor liens on the property, and after your spouse's homestead exemption.


Generally, a lien can only be put on a property held as tenants by entirety for joint debts of the husband and wife. So, I am not sure how the lien was put on the property in the first place, unless your state law allows a lien against one spouse to be put on a property owned as tenants by the entirety.

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