Bankruptcy loopholes??? HELP!!

[simons220]

Hi,
My Dad is being sued and has a judgment against him. My mom has no signatures, POA, or any other legal matter to carry joint ownership in his business deals or bank accts. In fact they have had seperate bank accts since marriage. Now, they have resided in the same home they purchased 25 years ago-so imagine-YES a lot of equity-especially for southern california. So recently to protect home my Dad gave up his rights to home to mom as a gift (signed title over, did pro-nup_ and years ago they had a homestead put on the place. Ok-now since my mom has no affiliation to his business except by marriage-NO legal papers, contracts...bla bla bla...is she liable for his debts? Also there is a lien on home from another business matter against my dad...that lein transferred over to my mom I am assumin? Can the original lien from my dad's business be put into total bankruptcy since again-only in his name.Dad has always been stubborn and never asks my mom about business stuff-so she is in the dark a lot about his decisions..so surprise he got sued and now there is a major threat on home-and a shocker to her. But since documents and all that stuff has been filed can my mom still lose her home-even though judgment was against dad? Ok-almost done with my book....(-:
Lastly, before transfer of title-lawyer said dad couldn't file bankruptcy because too much equity on home. Now that he doesn't have ownership can he file bankruptcy? That was the only setback. But is it illegal to file bankruptcy shortly after transfer of home. he has been advised not too because it will look like he is trying to not pay bills...he honestly wants to pay off what he feels he owes..integrity..but what the guy is trying to get out of him is his own retirement. can a lawyer force my mom to sell her home when she was unaware of all business matters?

Thanks for reading-hope someone knows the loopholes or reccomend a san diego lawyer that can help.

sheila

[Cmonlottery]

The transfer of the home will probably be seen as fraud and will get your father in further trouble. I doubt chapter 7 is an option at this point. Are the liens and judgements substantial?(I mean more than the value of his house and his retirement)

[simons220]

Help!

the tranfer on the home was done prior to judgment and was given as a "gift" to my mom. the past lien was from several years ago and they have been making payments on it. the main concern is if he can file without effecting the loss of the home from the most current judgment. wouldn't the house be protected with the it being out of his name?
he would be filing bankruptcy without my mom. is she liable for his business debts? they have no accts together, not one signature to relate her to his business, they own no business expenses together-nothing. the only thing they had prior to judgment was the home...but that was transferred before the most recent court hearing.
as for the previous lien from years back...that has stayed the same. the problem is -now I am sure the lawyer now knows that title has been transferred-can they force mom to sell home from dad's debt????
thanks soooooooooooo much! any info would help...or resolution

now dad is trying to make payments now and wants to pay this particular party what he knows he owes justifibly...but this guy wants a 5k monthly payment...so basically my dad can work his butt off for the next 30years to support this guy when he is far from being a rich man! so he's basically working to retire the other guy and bring no take home for himself?? how is that legal when a judge can see what his take home is?? he is a contractor...no 401k...only had the home...

[HHM]

Yeah, that type of transfer is text-book debtor fraud. (not that you dad has ill-intent), but its a transfer of a major assets, to avoid creditors, and the transfer was made to an insider (his wife).

But, When did this transfer take place?

Your Dad may still have an equitable interest in the house even if his name is not on the title. California is a community property state, so for a married couple, it really doesn't matter whose name is on the title, both spouses have a one half interest in the house. The Post-Nup may help, but generally the surrendering of community property in an asset like a house has to be recorded with the county recorder.

[simons220]

Yikes!

Let's see-I think they had a post nup or whatever it's called right around the time he discovered they were trying to serve papers. His biggest fear was for Mom to take the blunt of this.
As for the the transfer; that was done before he was taken to court or had a judgment placed against him. I don't know if that makes much of a difference.
The lawyer that explained why he couldn't file at the time advised the title transfer. So you're saying Fraud-YIKES!! Ok not good.
So do u know if the lineholder can force sale now? I have to double check to see if that has been recorded with the county..not sure.
Thanks-so much! Any and all info will help.

[rockymtnlady]

Just a thought...

Perhaps your mom and dad should talk to an attorney together. Maybe she might also want to consider filing for bankruptcy, if it will help her keep the house.