Expert: Michael Brotherton - 10/10/2007

Question
Hi Michael!

Before I was married, I racked up a ton of debt. I got married in July 2007, and the creditors are ruthless! I have recently been sued countless times, and have several judgements against me. The thing is, I own a home solely in my name. I'm afraid that the creditors will soon act of the judgements and evently get soon levy on my home. My question is, can I transfer the title of my home to my new husband or even my minor daughter to avoid them further action? Also, I plan on filling bankruptcy soon, and was wondering if I can include these judgements in the bankruptcy?

Thanks!

Answer
I would need to know what state you are in to be specific. In most cases once a creditor gets a judgment they will place a judgment lien on your home or other property. This does not mean they can take your home only that they will get paid if you sell or refinance your mortgage. Although you may be able to negotiate a settlement they are not always cooperate.

As for transferring your home into your husband or daughters name, this is not usually allowable. Your creditor may have the right to void this transfer if they can show you did so to avoid collection of a debt. I would have a title search done to see if they have already placed a lien on the property before going any further. You may be able to encumber the property by obtaining a loan or selling part interest in the property or "sell" the property to your husband if there are no liens.

If you file BK and the liens are already placed against the property you may not be able to void their lien. However, a good attorney may be able to do so. You will need to seek legal counsel here to see what can be done in your state.

Good luck.