In Illinois, there are several ways to take title when more than one person owns real estate. Generally, primary residences of married couples are owned through tenancy by the entirety, which offers certain benefits, including additional protection from creditors. In general, if one spouse is filing bankruptcy, and the property has been owned through tenancy by the entirety since before the "look-back" period, then any equity in the property would be protected and exempt. However, if both spouses file bankruptcy, or if the property has not been owned in this manner, any equity above the state exemption level could be at risk of seizure by the trustee. Talk to one of our bankruptcy attorneys for additional information about protecting the equity in your house.
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