Can quitclaim prevent creditors from placing liens on home?

pam100257 · Joined: 07 Nov 2007 Posts: 1 1.73 Dollars($)

I recently became disabled and have lots of medical bills from complications due to heart surgery, my income has gone from over $75,000/yr to about $9000/year. Some of the my bills are in collection, the only thing I have left is my home, if I were to quit claim to my daughter, would that prevent creditors from placing liens on the property because of my bills? There are no pending suits or anything like that at this point. Is there a better way to protect the property?

Guest 0.10 Dollars($)

I think you cannot stop creditors from placing a lien just by quitclaiming property.

Caron

Hi Pam,

Welcome to our forums.

Since you have incurred the debt, your creditor may seek a civil judgment against you or try to garnish your wages. Even if they do not seek a judgment, they have a claim on your assets since you have not been regular on your payments. You may try to transfer the property to a trust or to someone else but the creditor may claim that it is a fraudulent conveyance leaving the transfer aside. In this situation, the term "fraudulent conveyance" does not imply that it's a criminal act. Fraudulent transfer occurs under the following circumstances:

1. You transferred the property thereby intending to stop or prevent collection attempts from your creditors.

2. You transferred property to a third party and for less than it's worth and after doing so, you became insolvent, that is, a state wherein your debts exceed your home.

Good luck

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi,

Quitclaim is not a solution here. If you want to quitclaim then you have to clear the lien before signing the quitclaim deed. And if you want to sell the property then you have to pay the lien at the closing. So I think you should better pay it off somehow.

Thanks,
Larry

Guest 0.10 Dollars($)

my mother has cancer and will not live long and has no burial insurance. she has lots of credit card debt . she owns her home.so can she sign her home over to me so i will be able to sell it to pay her funeral expenses and not have the credit card people come after it. i wont be able to pay for her furneral without it.

Niicss · Posted: Mon Aug 18, 2008 6:12 am Post subject:

Welcome Jane.

Credit card debts are unsecured debts. So if they have not place a lien yet then the credit company cannot come after you for the due debts after your mother signs the deed to you. So ask your mother to quitclaim the property toy. By the way is it a mortgaged property?

Guest 0.10 Dollars($)

If mother passes away with the house still in her name, can the creditors come after the house? We need money for funeral expenses. We need to be sure to have the money from the house for that reason.
Thank you for your help, Jane

liaoyu03 · Joined: 09 Sep 2007 Posts: 213 9.09 Dollars($)

yes, lender is not fool, they don't allow quitclaim on a home whoes owner have had a debt. so ,you cannot prevent your lender to places liens on your home by quit claim.

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