QUESTION
Is it possible to place a lien on an inheritance?
Asked on Jul 05th, 2014 on Bankruptcy - Illinois
More details to this question:
In a family situation that has lasted for several years, one sister has borrowed $100,000 from another sister with a promise to repay the money in five years with interest. The money was never repaid, and the sister skipped town. Now, another sister has left a considerable amount of money to all of her sisters, hence the question - can one sister place a lien on the other sister's inheritance?
4 ANSWERS
General Practice Attorney serving Belvidere, IL
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Law Offices of Henry Repay
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You are talking about a lot of money. So, see an attorney immediately. It is possible that the best way to handle this would be to secure a judgment as promptly as possible.
Answered on Jul 07th, 2014 at 2:10 PM
She would first have to get a judgment against the sister. One can not merely place a lien when they have a claim against someone, unless a statute gives them that right, such as a mechanics liens act for work done on property. Someone who says someone else owes them money must first sue and obtain a money judgment against the debtor in order to place a lien. If the sister who owes the money agrees, then she can assign her right to the sister who is owed the money.
Answered on Jul 07th, 2014 at 2:10 PM
Commercial Attorney serving Chicago, IL
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Ashcraft & Ashcraft, Ltd.
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You can obtain a judgment against the debtor sister and use the judgment to attach the distribution due the debtor sister before the funds are distributed from the estate.
Answered on Jul 07th, 2014 at 12:15 PM
Debt Collection Attorney serving Chicago, IL
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Edelman, Combs, Latturner & Goodwin, LLC
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If "another sister" has died, and you have a judgment, it may be possible to issue a citation to a financial institution holding the funds. If "another sister" is still alive, the sister that borrowed the $100,000 has no legal interest in her funds. I do suggest that you obtain a judgment against the sister that took the money. You do not indicate whether the promise was in writing or what the rate of interest was; there are problems with enforcing a contract which cannot by its terms be performed in one year, or which has a rate of interest in excess of 9%.
Answered on Jul 07th, 2014 at 12:15 PM