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Bankruptcy - Creditor's Right Against Entirety Property - Applicablity Of State Law When United States Is Plaintiff, James Cripe

Michigan Law Review

The United States as assignee sought a joint judgment on four unsecured promissory notes signed by the defendants, who are husband and wife. The proceeds of the notes were used to improve real property held by the entireties by the defendants. The husband had filed in bankruptcy before the assignment of the notes to plaintiff and was discharged from his joint and several liability on the promissory notes prior to the commencement of any action on them. His estate by the entireties, however, was not used to satisfy any listed debts because under state law he had no divisible title …