QUESTION
Can this house be taken from us because she had a judgment against her before her and my fiancé did the quit claim deed?
Asked on Apr 21st, 2014 on Estate Planning - Michigan
More details to this question:
My soon to be mother-in-law had a judgment against her because of a credit card she wasn't paying on. After she found this out she put her house, her car, and a truck in my fiancé's name. This was done this past October. Since then we know of at least 1 other judgment that has come up against her. Also since then, we have switched her houses she is now living in our house and we are living in her house. This was done due to space and also because we have been paying her property taxes for two years.
4 ANSWERS
Yes. What has occurred is called a fraudulent conveyance. A transfer of property for less than full & fair consideration while the transferor is indebted to creditors is a fraudulent conveyance that the creditors can request be set aside. Whether the creditors will do that or not is unknown, but they have the right to do so.
Answered on Apr 22nd, 2014 at 2:34 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You should see an attorney, it is quite possible that the transactions which you are speaking of could be determined by accord to be fraudulent conveyances and therefore reversed to the benefit of the creditors.
Answered on Apr 22nd, 2014 at 11:28 AM
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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Generally unless you gave value for the ownership you can be sued for a fraudulent conveyance..and the value you were "given" taken back The statute of limitation for fraudulent conveyances is 4 years so only 3 1/2 years to go and you are free and clear.
Answered on Apr 22nd, 2014 at 11:27 AM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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You have a complicated mess on your hands. Yes, it is possible that your mother-in-law could lose her house. It is possible that her deed would be seen as an attempt to defraud her creditors and could be set aside by a judge. It would be best if you reviewed this with a lawyer to determine how best to proceed. If your mother-in-law can pay off the debt, that would also be a wise decision.
Answered on Apr 22nd, 2014 at 11:26 AM