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Using Tenancy by theEntirety to Protect your Assets
Tenancy by the entirety is a special kind of property ownership that's only for married couples in a handful of states. With tenancy by the entirety, both spouses have the right to enjoy the entire property. In the event that only one files bankruptcy and property is held in both names, then the property is 100% protected. If both file bankruptcy, however, the property is not protected and may be liquidated to pay back any unsecured creditors. Tenancy also applies to judgment liens (i.e. liens on home, checking accounts, etc.) Some states allow tenancy by the entirety rights for all property, whereas others reserve it only for real estate. Tenancy by the entirety property ownership rights apply to all debts except IRS tax debt.