judgements and liens
Category: Relationships and Society > Law
Asked by: chenling-ga
List Price: $50.00
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.
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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 state. 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.
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?
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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