You fell into debt when you lost your job, and things have been tough around your home. You and your spouse have had some hard times in the past and know you’ll get through them, but with creditors knocking at your door, you’re not sure how to react. You just want to resolve these issues and go back to living life normally.
One thing you are particularly worried about is having a creditor seize your joint property. After all, you don’t believe that your spouse should be liable for the damages that were caused by you losing your job. Those debts were in your name and were your responsibility; you don’t want them to lose assets over this issue.
The good news is that a judgment only against you and not your spouse allows you to claim an exemption called “tenancy by the entirety.” This exemption means that your assets can’t be divided to pay back debts. Any joint marital property, like your vehicle, home or other items, is exempt from creditors.
Keep in mind that this exemption is not automatic. You will need to talk to your attorney about filing for a tenancy by the entirety in court. However, if it is granted, you will no longer have to worry about your marital assets being claimed by creditors.
Our website has more information about bankruptcy, debt relief and the options that are open to you if you’ve been struggling with debt. The right help can be beneficial as you attempt to protect your assets and eliminate debts from your life.