I live in Illinois where tenants by the entirety is legal for real estate. I currently have a very large amount of credit card debt 150K+ and a upside-down mortgage on my home. I also have about the same amount of assets in the market. All is in my name, not my wife.
Let's say I was to put my existing home on the market and purchase a new property. I used all of my existing assets to buy the new home and held title as tenants of the entirety with my wife.
I now have 2 homes, one on the market and one I live in. I have no liquid assets and 150K in credit card debt.
Six months later, my first house still has not sold. I can't afford payments on my cards and houses, I quit paying everything but my new primary mortgage (which is tiny because of the large down payment). Everything goes to collections. 12 months after purchasing the home I declare Chapter 7 by myself.
Question: How does the court view my new primary residence with 150K in equity? Does tenants of the entirety trump all and I keep my home? Or does the court view my actions as intent to never pay back the debt and force sale of the home despite title?
Let's say I was to put my existing home on the market and purchase a new property. I used all of my existing assets to buy the new home and held title as tenants of the entirety with my wife.
I now have 2 homes, one on the market and one I live in. I have no liquid assets and 150K in credit card debt.
Six months later, my first house still has not sold. I can't afford payments on my cards and houses, I quit paying everything but my new primary mortgage (which is tiny because of the large down payment). Everything goes to collections. 12 months after purchasing the home I declare Chapter 7 by myself.
Question: How does the court view my new primary residence with 150K in equity? Does tenants of the entirety trump all and I keep my home? Or does the court view my actions as intent to never pay back the debt and force sale of the home despite title?
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