Tenants in entirety compromise?

[chuckwow]

Hi,

My wife and I are tenants in entirety on our primary residence (Hawaii). We are (still) considering hiring a property mgr, renting out this address, and moving abroad for awhile.

We are concerned that using the property as a rental will essentially turn it into a buisness and compromise, if not remove, the protection afforded us (against lawsuits etc) under the rules of the tenants in entirety code.

Anyone have any knowledge they can share regarding this subject? It will be most appreciated!

 

[chuckwow]

bump

 

[Texas Proud]

Not sure about your state laws etc.... but the things that are 'safe' from creditors in a BK are listed and a rental property is not one of them...

 

[meierlde]

If you think about it the homestead exemption in BK exists to provide you a place to stay no matter what happens, if you rent it out its not the place you are staying, so therefore no need for protection.

 

[chuckwow]

Thank you for the considerate replies. I think Texas' homesteading laws differ from Hawaii TIE laws. I spoke with my attorney and he said rental or not, the property would remain protected under this code as long as both owners were not filing for BK (etc.) jointly and did not share any debt that would be declared by the party filing for BK. In other words, if my wife and I were TIE and she filed for BK because of bills not related to me...or the two of us, the property would remain protected because I could not be punished for her bad debt. BTW, this was all hypothetical. I need to say that in the event my wife sees this thread. She would be livid that I used her as an example, LOL.