Legal Question in Civil Litigation in California

Will they loose house

Hi and Thank You,

My 88 year old uncle just severaly damaged a car in a walmart parking lot. They found out they had not paid the insurance on this truck/van however they have insurance on their automobile. It appears that the damage may be $20,000. or more and they do not have any money. The only possession they have is a mobile home on some property, if their insurance company will not help them can they put their property into her son's name to avoid loosing the home through a lawsuite? If they do this after the accident, can the transfer be set aside by the judge if and when they are sued? Should they do this right away? Thank you so much for any guidance you can give us inn this matter. We need urgent help.


Asked on 5/26/04, 6:04 pm

3 Answers from Attorneys

Sheldon G. Bardach Law Offices of Sheldon G. Bardach

Re: Will they loose house

I'm afraid not. A transfer of assets to avoid creditors, or even prospective creditors, is known as a fraudulent transfer, and voidable. What they can do, is to take a bankruptcy, or at least, in talking to the car owner, threaten that, and then attempt to work out something they can afford, in payments. That is better for the car owner than getting nothing.

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Answered on 5/26/04, 6:09 pm
Donald Holben Donald R. Holben & Associates, APC

Re: Will they loose house

What you propose is known as a fraudulent transfer. In addition to the fact that it can be undone, the Court will look badly at this conduct. My recommendation is that they speak with a bankruptcy attorney for counsel. That might be the right direction to go if not able to work out a workable situation with other driver/owner. If I was the owner of the other car, I would consider something, no matter how small the amount, rather than nothing by bankruptcy.

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Answered on 5/26/04, 7:48 pm
Phillip Cooke Law offices of Phillip A. cooke

Re: Will they loose house

To protect their home they should have an attorney homestead their home and record the homestead. Unless the value of the home exceeds the exemption, that should protect the home.

The other party's insurance company will probably pay the damage and then bring suit. Such suit should be sent to all insurance companies that may provide coverage to see if the will defend or indemnify. If they do not an attorney should be consulted about handling the debt, whether it be to resolve the debt or file for bankruptcy.

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Answered on 5/27/04, 11:31 am


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