My question involves bankruptcy in the state of: PA
My sister has lived in PA the last 12 years. She and her husband own a home they live in which is probably valued at $80K She only owes $4K on the home. She owes about $35K in debt. She and her husband are both on Social Security and only get about $1200/mo. If they file for BK, can they keep their house? It's confusing because I read they can keep $42,500 as an exemption. (Federal) Does that mean they will be forced to sell their home and pay back the debt of $41,000? I know it's different for Chapter 13 and 7 but I'm not sure I'm understanding it clearly.
What happens if only she files for BK under the super exemption. Does that mean creditors can't go against the home because it's in both of their names?
This is what I read:
If property is held as a tenancy in the entirety, it is owned as a whole by both married persons and creditors cannot take it to pay the debts of only one owner. For this reason, tenancy by the entirety is often referred to as a “super exemption,” although it is not actually an exemption.

