If only one spouse is filing bankruptcy what happens to jointly owned property?
Tennessee is not a community property state, so if the property is titled as a Tenancy by the entirety the property will be exempt from debts of one spouse. The bankruptcy may sell property owned as joint tenants and divide the property. The equity achieved would need to be divided between the creditors and the spouse. This procedure would be more costly than a normal sale so a trustee would be unlikely to attempt this except for larger amounts of equity.
