Legal Question in Credit and Debt Law in Pennsylvania

Re: collection of judgement

You asked about judgments and settlement of the sale of real property.

If the judgments have been perfected as liens against the property then they will need to be paid off as part of the closing.

Depending on how the property there will be different outcomes. But generally, when calculating who gets what from the proceeds: the mortgage holders are paid first, then the judgment creditors, and then the property owners calculate the distr8ibution of the proceeds. The amounts to be paid to the judgment creditors should be calculated to come entirely from your portion of the proceeds. If the judgment debts exceed the value of your portion of the proceeds then there will be a deficit which you will owe to your daughter. Many people figure the proceeds are split evenly after the judgment creditors, that is incorrect as it penalizes the property owner who did not encumber her asset. In some cases the judgment creditor cannot get any proceeds that exceed the value of the judgment debtors portion.

You should contact an attorney to determine how to value the sale and how to distribute the proceeds.

Regards,

Roger