QUESTION

Can I quit claim a deed if I have a judgement against me?

Asked on Jun 13th, 2012 on Bankruptcy - Michigan
More details to this question:
I own a home. I paid $100,000 for it at auction & put about $50,000 into it. All was paid cash. I have it up for sale & found out that this business put a judgement against me for $11,700. It was from a repossed car before I bought the home. I had no idea they did this. Can I quit claim the deed to my daughter so I do not have to pay the judgement or is it too late? I am selling for $222,500 so I am making a $72,50 profit. Im not sure if I fall under the rules of exemption on real estate since it was all paid cash. I am married, but am on the deed alone.
Report Abuse

4 ANSWERS

Bankruptcy Attorney serving Phoenix, AZ at Law Office of D. L. Drain, P.A.
Update Your Profile
It would be best to take care of the debt. Do not transfer the house to your daughter. Unless she pays fair market value it is called a fraudulent conveyance.
Answered on Jun 22nd, 2012 at 7:00 PM

Report Abuse
Appellate Attorney serving Grosse Pointe Farms, MI at Musilli Brennan Associates, PLLC
Update Your Profile
You may generally transact business as long as it is for far value. You, however, have issues with the judgment creditor and a quit claim to you daughter to avoid the creditor is fraudulent and can be reversed, and may cause both of you future problems. You need to consult an attorney now. What you are planning could cause more problems than it is intended to solve.
Answered on Jun 21st, 2012 at 7:24 PM

Report Abuse
Litigation Attorney serving Westland, MI at Clos, Russell & Wirth, P.C.
Update Your Profile
The issue is not whether or not you have a judgment against you, the issue is whether or not the creditor used that judgment to obtain a lien against the home. If so, then you can still transfer the property, but the lien must be paid at the time of closing/transfer. Just because the creditor has a judgment against you does not divest of the right to sell and transfer property. A money judgment is just a court order saying that you owe someone a certain amount of money. They still have to collect on the judgment using whatever legal means exist; i.e., liens, garnishment, seizures, etc. However, if the transfer of the property is done to avoid creditors, the transfer could be reversed under the Fraudulent Transfers Act.
Answered on Jun 21st, 2012 at 6:08 PM

Report Abuse
Real Estate Attorney serving South Jordan, UT at James T. Dunn P.C.
Update Your Profile
body{font-family: Geneva,Arial,Helvetica,sans-serif;font-size:9pt;background-color: #ffffff;color: black;} If you deed the property to your daughter, the judgment still attaches to the property and she takes the real estate with the judgment debt. The judgment is good for 8 years from the date on entry and expires unless renewed prior to the expiration of 8 yrs. You may just want to sit tight until the time period runs. You can file a homestead exemption against the property but it doesn't protect you since there is ample equity to pay the judgment.
Answered on Jun 21st, 2012 at 6:08 PM

Report Abuse

Ask a Lawyer

Consumers can use this platform to pose legal questions to real lawyers and receive free insights.

Participating legal professionals get the opportunity to speak directly with people who may need their services, as well as enhance their standing in the Lawyers.com community.

0 out of 150 characters