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Q: judgements and liens ( No Answer,   3 Comments )
Subject: judgements and liens
Category: Relationships and Society > Law
Asked by: chenling-ga
List Price: $50.00
Posted: 13 Jul 2006 21:54 PDT
Expires: 12 Aug 2006 21:54 PDT
Question ID: 746165
Hi. My question has to do with judgements and liens. Here's the
summary of what's going on. My father use to work for my uncle, who
was the CEO of this company X (with main office in another country).
My uncle died, and my cousin TOM, fearing that my dad would take over,
TOOK over first and fired all the old timers that use to work for my
uncle, his father. My dad use to be the CEO of the USA headquarters.
His pension, stocks (he owned around 25% of the company), everything
was stripped. What's worse is that my cousin sued my parents, who both
worked at the company, and my OTHER uncle, who also worked at the
company because we wouldn't quietly go away. They wanted their
pensions and their stock options, and instead of dealing with that, my
cousin put a lawsuit on them and accused them of this and that. Since
they are all fired, they have no papers to support themselves, and so
they lost the case. Now there is a judgement for lets say a couple
million dollars, and obviously they can't pay it back. Without having
went to the debters exam yet, all the money from their accounts were
wiped out. We also received an "abstract of judgement" for all the
propertys they own.

Is there anything they can do? File for bankruptcy? Appeal? Anyway to
be exempt from paying this judgement? Now, not only they have no money
in their accounts, they are afraid their house will be gone too. They
are a firm believer in god, but it's hard putting your faith in god,
when you are surrounded by all this chaos. I want to try to help them
find a way out.

Please help me find some way to deal with this. Can they grant deed
the house to me? Can they file for bankruptcy? Can they Refinance the
house so that there is no equity? Can they Appeal? Is there ANYTHING
they can do other than sitting around while living in hell? Please
help, i'm the only one with little money in my bank account now, and i
have to find a way to pay for the mortgage... Thank you for reading.

Clarification of Question by chenling-ga on 13 Jul 2006 22:20 PDT
Can anything within the law, like filing for bankruptcy discharge the
multi million dollar judgement against my parents? Or is there a
"limit" to what kind or how much  money a judgement can be discharged?

Clarification of Question by chenling-ga on 14 Jul 2006 19:11 PDT
Thank you so much for the answer. It sounds like filling for
bankruptcy is the best option, because the lawyer that they have right
now (that has been with them throughout the case), is asking for money
before they can appeal. We have no money to give them. It seems like
they do not want to help because they can't get any money anyway. That
is why i have resorted to researching myself, etc and here i am.

I was thinking since the only assets they have now, are the house and
maybe a car, filing for bankruptcy should be a good option right?
Since they live in the house and need to use the car, isn't that
excempt from the judgement? Also, if they do declare bankruptcy, the
judgement for 4 million dollars just goes away just like that? The
high amount of the judgement makes me unsure if it would just be wiped
clean... Are there any rules that say what kind of juedgements or how
high the amount of a judgement can/can't be discharged thru BK?

This IS in the US btw... The headquarters in the US sued my parents
and uncle and many other employees that refused to just leave without
any pensions/etc after working for the company for over 15 years.

Thank you guys very much, u have been very helpful...
God bless.

Clarification of Question by chenling-ga on 23 Jul 2006 10:24 PDT
I think the company was gonna be his anyway, but not right after my
uncle passed. My dad was suppose to take over temporarily so that
things can transition smoothly, and slowly baby him (cousin) into the
role of the ceo. But I guess my cousin was afraid my dad was going to
take over forever, so he started taking things into his own
hands...firing people, etc. So when my dad wouldn't back off, because
there was no reason to get fired after almost 20 years of making this
company what it is from the ground up, my cousin slapped a suit before
anything else would happen to him i guess.

Update to this story is that the company is now bankrupt (the one
oversees, the "mother company". Cousin didn't pay alot of employees
salaries for 2 months, there were strikes in front of the offices. He
is now hiding somewhere, no one can find him. And alot of people are
looking for him. Doesn't help us much though, as everything still
stands, unless the US office closes too, because technically they are
the Plaintiff. Cousin used ths US office to sue my parents, I think i
left that out. We are hoping that they close their doors soon so
there's no more plaintiff, and this gets thrown out. Right?
There is no answer at this time.

Subject: Re: judgements and liens
From: hnguyen-ga on 14 Jul 2006 00:14 PDT
There are some variation in judgment and debt collection laws across
the United States, so it might help to include your father's resident

It seems that the judgment creditor has already collected from your
father's bank accounts, and placed a real estate lien on your house.
Lets examine your father's options.

1) Grant deed the house to you
   In this case, the house will still bear the lien, due for the
amount that your father owes your nephew (minus the amount collected 
from the bank, of course). If you sell the house some years from now,
the judgment amount probably will be deducted from your share of the
revenue unless you can get the buyer to accept the house with the
outstanding lien. Most buyers, however, will probably insist on the
judgment being paid so that they can get a clear deed. Until the
judgment creditor release the lien, it will remain on the property
regardless of any change in ownership.

   Note that some mortage contract includes a "due-on-sale" clause,
which stipulates that the full remaining principal is due is there is
any change in ownership. But even if there is such a thing, your
father's bank might not choose to exercise the option.

2) File for bankruptcy
   Filing for bankruptcy will wipe the judgment from your father's
record. However, generally the court will appoint a trustee who will
sell all of your father's non-exempt assets to provide relief to his
creditors. Your father's house probably will also be liquidated, with
your father receiving a certain amount of equity. The amount of exempt
equity varies by state, but it usually is modest.

3) Refinancing
   Similar to selling a house, refinancing usually requires a clear
deed. The refinancing process often requires the home owner to pay off
the lien first. This probably is not a viable option.

4) Negotiate with the Judgment Creditor
   Might be worth a shot.

5) Appeal the Judgment
   I don't know the particulars of your father's lawsuit, but if the
charges  were baseless, then your father should appeal. You should be
aware that there is a fixed time interval (length depends on state)
during which your father might file appeal. Make sure to file while
you can.

So, lets recapitulate.
1) Grant deed the house: The lien will remain on the house, to be due
when you sell it later. Furthermore, your father will still be liable
for the judgment, and any assets he acquires later will be fair game
for collection.

2) Bankruptcy:  He will not be liable for his judgment anymore. His
assets, most likely including the house, will be sold and the proceeds
distributed to the creditors. He will end up with a small amount of
equity, however.

3) Refiance: Your father will still be liable for the judgment. Not
easy to refiance with outstanding lien on the house.

4) Negotiate with the Judgment Creditor: Worth a shot.

5) Appeal the Judgment: Best bet. Probably hard to find a good lawyer
now that your father's money is gone, though.
Subject: Re: judgements and liens
From: myoarin-ga on 14 Jul 2006 02:31 PDT
This does not sound like it happened in USA.  What country and law is involved?
Subject: Re: judgements and liens
From: rx55-ga on 21 Jul 2006 12:05 PDT
It seems that there is some information missing here.  Exactly on what
grounds did your cousin sue these employees on?  Additionally, this
sounds very Hamlet-like; how was this cousin able to take over first? 
It seems that the board of directors would have elected a new CEO. 
Any additional details would help.

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