Legal Question in Real Estate Law in California
change of ownership of property
Prior to being sued, but a debt collector is trying to have my son pay unpaid hospital bills. Can he change ownership to property to his brother? Is it legal?
2 Answers from Attorneys
Re: change of ownership of property
It's called a fraud on creditors and it can be undone. It's not a crime. I'd teach my son to face his problems squarely. If he owes the money, negotiate a settlement or pay off plan. If not, then fight the hospital in court.
Re: change of ownership of property
Any transfer to avoid paying a just debt can be set aside as a fraudulent transfer and can also cause his brother to become subject to a judgment for having cooperated/conspired in such a transfer. Moreover, punitive damages can be assessed in such a transaction and those can be held non-dischargeable in a bankruptcy. Your son should pay his debts.
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