Legal Question in Bankruptcy in California

transfered property

This is about friend of mine , Linda.

Linda married man 17 her junior in 2000

2 years ago, she was diagnosed with deadly cancer. She owned house in California worth about $500k. these 2 years ago she transfered the ownership to her husband. They had agreement, she can stay in the house to the end. Linda went abroad. She got almost cured, with chances of surviving, but in meantime, her husband , divorced moved out of state.

Contacted, said, wants to keep the house, but she can live there.

After medical expenses, she is having well over 100k debt (credit cards and different medical accounts). She can not pay anymore, her only income is 1700/month and she is to sick to work, and she is almost 60 .

Question; if she would stop to pay, can the creditors reverse quit claim deed , take the house and live her on the street ? Would be the deed, which is now over 2 years old respected or can be reversed if she would proclaim bk ?

The sad reality is , she even can not afford the lawyer. She is ready ''to let go and do nothing'' .

What is in future for her, as the house where she lives belongs to her ex and she does not have anything of value.

Please advise; I want to help her .


Asked on 12/25/07, 2:39 am

2 Answers from Attorneys
Allen Farshi Law Offices of Allen Farshi

Re: transfered property

Your answer is probably not. Creditors can not reverse the quitclaim, however if the debt was incurred prior to the divorce being finalized it would be a community debt. Unless the divorce court apportioned the entire debt to the wife, the husband is still jointly liable and it is still within the statute of limitations for the creditors to sue and place a lien on the property. They can not however evict her from the property.

good Luck

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Answered on 12/26/07, 4:00 pm
Robert F. Cohen Law Office of Robert F. Cohen

Re: transfered property

If the divorce acknowledged ex-husband's ownership of house, then it's not her property. BK sounds like it might assist her with her debts, and it might improve her outlook. Of course, an attorney would have to look at the whole situation including when she used her credit cards, what the source is of her $1700 per month income, etc. I wish her well.

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Answered on 12/25/07, 6:30 am


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