Can this house be taken from us because she had a judgment against her before her and my fiancé did the quit claim deed? 5 Answers as of April 22, 2014

My soon to be mother-in-law had a judgment against her because of a credit card she wasn't paying on. After she found this out she put her house, her car, and a truck in my fiancé's name. This was done this past October. Since then we know of at least 1 other judgment that has come up against her. Also since then, we have switched her houses she is now living in our house and we are living in her house. This was done due to space and also because we have been paying her property taxes for two years.

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Vandervoort, Christ & Fisher, P.C. | James E. Reed
Yes. What has occurred is called a fraudulent conveyance. A transfer of property for less than full & fair consideration while the transferor is indebted to creditors is a fraudulent conveyance that the creditors can request be set aside. Whether the creditors will do that or not is unknown, but they have the right to do so.
Answer Applies to: Michigan
Replied: 4/22/2014
Hamblin Law Office | Sally Hamblin
The house would generally need a judgement lein on it. If so, once house sold then that lein would have to be paid off. Doing a quit claim deed on a home having a lein against it gives you no clear title to it. Papers from the court ordering a judgement lein would have been filed and she sent a copy.
Answer Applies to: Michigan
Replied: 4/22/2014
Frederick & Frederick PLC | James P Frederick
You have a complicated mess on your hands. Yes, it is possible that your mother-in-law could lose her house. It is possible that her deed would be seen as an attempt to defraud her creditors and could be set aside by a judge. It would be best if you reviewed this with a lawyer to determine how best to proceed. If your mother-in-law can pay off the debt, that would also be a wise decision.
Answer Applies to: Michigan
Replied: 4/22/2014
Musilli Brennan Associates PLLC
Musilli Brennan Associates PLLC | John F Brennan
You should see an attorney, it is quite possible that the transactions which you are speaking of could be determined by accord to be fraudulent conveyances and therefore reversed to the benefit of the creditors.
Answer Applies to: Michigan
Replied: 4/22/2014
James T. Weiner & Associates, P.C.
James T. Weiner & Associates, P.C. | James T. Weiner
Generally unless you gave value for the ownership you can be sued for a fraudulent conveyance..and the value you were "given" taken back The statute of limitation for fraudulent conveyances is 4 years so only 3 1/2 years to go and you are free and clear.
Answer Applies to: Michigan
Replied: 4/22/2014
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