Creditors and Bankruptcy/medical debt collections

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Expert: Brian V. Lee, Esq. - 9/7/2011


Question
My wife incurred a medical debt of $3,500 about 6 yrs. ago in Washington state.  She recently received a Notice of Small Claim with a court appearance scheduled in October 2011.  At the time of her surgery, she had no medical insurance.  She is now on SSI with mental disability. Our mobile home is valued at $5,000, and it is soley in her name.  I am unemployed, we have no assets (other than our mobile home), including no bank accounts. We have bad credit.

In all likely-hood, what will be the outcome of this case?  We have no money to pay the creditor.  Can the creditor apply a lien on our mobile home?  Can we protect our home from a lien?  Would it help, if the mobile home were in my name? Does her being on SSI make a difference? Is bankruptcy an option if a judgement is granted, as our credit is very poor anyway?

Answer
As ridiculous as it sounds, Yes, the creditor can indeed obtain judgment on the original debt and lien against your wife's home.  Transfer ownership from your wife to yourself via quitclaim deed and register the deed with land records.  


Brian V. Lee, Esq.
Virginia bankruptcy attorney
http://www.lee-legal.com

Creditors and Bankruptcy

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Brian V. Lee, Esq.

Expertise

All questions related to consumer and business bankruptcy, debt management, and personal finances are welcome. Serving clients in the DC-metropolitan area since 2005, I am licensed in Virginia and the District of Columbia. I have provided counsel to hundreds of clients with a wide variety of complex legal and financial issues. Feel free to visit my All About Bankruptcy blog for more information.

Experience

Serving clients in the DC-metropolitan area since 2005, I am licensed in Virginia and the District of Columbia. I have provided counsel to hundreds of clients with a wide variety of complex legal and financial issues. * Bankruptcy Chapter 7 * Bankruptcy Chapter 13 * Bankruptcy Chapter 11 * Bankruptcy Terms * Foreclosures * Mortgage Issues * How to Save Your Home * How to Rebuild Your Credit * Property You Can Keep * Car Repossession * Debt Test * Tips for Consumers in Debt * What to Expect in Court * Washington, D.C., Exemptions * Virginia Exemptions * Checklist of Key Changes in Bankruptcy Law * Changes in Chapter 7 & 13 Bankruptcy Law * Big Changes in Bankruptcy Law

Organizations
DC Bar, VA Bar

Publications
http://www.lee-legal.com/bankruptcy-blog

Education/Credentials
I am a graduate of Rutgers University and the George Mason University School of Law.

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