Legal Question in Credit and Debt Law in California
a creditor placed an Abstract of Judgement on our home. my mother who lives in a different county has a deed of gift under my name giving me partial ownership of the home she and a relative are deeded as co-tenants (co-owners). Can I release or deed my portion back to her, to prevent the creditor from putting a lien on her home too?
1 Answer from Attorneys
IF the creditor has not yet recorded an abstract in that county too, yes, you can deed away your partial ownership to avoid it being attached. You would need to do it as a deed to her and/or the other relative and have it recorded before an abstract is recorded in that county. You should know, however, that if you do not have enough equity and assets to satisfy the judgment along with your other debts, or if by deeding away your interest in the other property you would no longer have enough equity and assets to satisfy the judgment and all other debts, then the deed could be undone as a fraudulent conveyance. In that case you would be better off talking to a bankruptcy attorney rather than deeding away your interest in the property. Filing bankruptcy before they record an abstract in that county would prevent the creditor from attaching that property, which could be a beneficial part of an overall bankruptcy strategy.