Legal Question in Credit and Debt Law in Pennsylvania

Re: protecting my property

If your property is held jointly it is most likely a tenancy by the entireties. If so, it is not subject to process for the debt of one of the tenants. Here is the statute:

12 Pa.C.S. � 5101 (2006)

� 5101. Short title of chapter and definitions

(a) SHORT TITLE OF CHAPTER.-- This chapter shall be known and may be cited as the Pennsylvania Uniform Fraudulent Transfer Act.

(b) DEFINITIONS.-- The following words and phrases when used in this chapter shall have the meanings given to them in this subsection unless the context clearly indicates otherwise:

"ASSET." Property of a debtor. The term does not include:

(1) property to the extent it is encumbered by a valid lien;

(2) property to the extent it is generally exempt under nonbankruptcy

law; or

(3) an interest in property held in tenancy by the entireties to the

extent it is not subject to process by a creditor holding a claim

against only one tenant.

"CLAIM." A right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured.

"CREDITOR." A person who has a claim.

"DEBT." Liability on a claim.

"DEBTOR." A person who is liable on a claim.

"LIEN." A charge against or an interest in property to secure payment of a debt or performance of an obligation. The term includes a security interest created by agreement, a judicial lien obtained by legal or equitable process or proceedings, a common law lien or a statutory lien.

"PERSON." An individual, partnership, corporation, association, organization, government or governmental subdivision or agency, business trust, estate, trust or any other legal or commercial entity.

"PROPERTY." Anything that may be the subject of ownership.

"TRANSFER." Every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with an asset or an interest in an asset. The term includes payment of money, release, lease and creation of a lien or other encumbrance.

"VALID LIEN." A lien that is effective against the holder of a judicial lien subsequently obtained by legal or equitable process or proceedings.

Re: protecting my property

Under PA law there is an exemption known as tenants by the entireties. It protects any assets owned by husband and wife as part of the marriage from the creditors of just one spouse. That means the assets must have been acquired jointly and always held jointly. Houses are a common example of this as are household goods and furnishings.

If all assets are in joint names and the debt is only in his name, the assets are protected now. However, it does not hurt to transfer title to the nondebtor.

Since all the assets are protected, your spouse could consider a bankruptcy to eliminate the debt. That will assure that bank accounts are protected and, if the law allows for wages to be attached in the future, you need not worry.

I trust this has been helpful but feel free to call or E-mail on a free initial basis.