Credit Card Debt and Homestead Exemption

spencer00si · #1 05-27-2009, 09:12 PM

My question involves judgment recovery in the State of: FLORIDA

I have a complicated situation, Currently I have 2 credit cards I originally opened and had my wife as an authorized user so she can receive a card as well. The balance between the 2 is appx $20k

Question 1: Can they go after my wife for the debts? I beleive at the time I just called the credit card company and gave them her name so they would mail her a card

Question 2: Can they put a lien on my residence, currently it is homestead exempt, however my wife's name is only on the warranty deed not mine, however on the mortgage my name is on it, so my question is the house really even in my name for them to put a lien on or just my wifes?

Last Question: We currently have a second investment home, that has both our names on the warranty deed, can I quit claim it over to just my wife so I am no longer on it, does it show I am no longer the owner, just my wife. Or can I create a LLC company and quit claim it over to the company?

Any help would be much appreciated
Thanks

divemedic · #2 05-28-2009, 04:38 AM

The court takes a rather dim view of people hiding assets to escape judgment

Bubba Jimmy · #3 05-29-2009, 10:12 AM

Q1: If your wife did not sign an agreement obligating her to the debt then she is not liable.

Q2: Unless the creditor goes to court, they cannot put a lien on anything. Homestead laws would prevent them from forcing a sale of your principle residence, but not from putting a lien on it. If your name is not on the property then they could not even put a lien on it.

Q3: If no legal action is yet pending, you can do anything you want with your property. If a judgement has already been issued then I agree with spencer00si.

spencer00si · #4 06-01-2009, 08:01 PM

Ok thanks for your help.

Does anyone know if the credit card companies do some sort of asset search on you before they make a decision on whether to try and settle with an amount or just take you to court.

Thanks

olleia · #5 06-25-2009, 08:54 PM

google declaration of homestead in florida, it is different than homestead exemption.
I just downloaded the declaration of homestead form and filed it with the court. from what I read no lein or judgment or forced sale can be placed on your home. good luck frank

Mr. Knowitall · #6 06-28-2009, 09:04 AM

Bubba Jimmy misspoke. If you know of potential liabilities, and intentionally move assets to leave yourself unable to satisfy your debts, you risk having the transfer declared fraudulent and voided, with both you and the recipient of the transfer losing any exemptions in relation to the property you transfer.

Quoting Florida Statutes, Sec.726.105 Transfers fraudulent as to present and future creditors.

(1) A transfer made or obligation incurred by a debtor is fraudulent as to a creditor, whether the creditor's claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or incurred the obligation:

(a) With actual intent to hinder, delay, or defraud any creditor of the debtor; or

(b) Without receiving a reasonably equivalent value in exchange for the transfer or obligation, and the debtor:
1. Was engaged or was about to engage in a business or a transaction for which the remaining assets of the debtor were unreasonably small in relation to the business or transaction; or

2. Intended to incur, or believed or reasonably should have believed that he or she would incur, debts beyond his or her ability to pay as they became due.

(2) In determining actual intent under paragraph (1)(a), consideration may be given, among other factors, to whether:

(a) The transfer or obligation was to an insider.

(b) The debtor retained possession or control of the property transferred after the transfer.

(c) The transfer or obligation was disclosed or concealed.

(d) Before the transfer was made or obligation was incurred, the debtor had been sued or threatened with suit.

(e) The transfer was of substantially all the debtor's assets.

(f) The debtor absconded.

(g) The debtor removed or concealed assets.

(h) The value of the consideration received by the debtor was reasonably equivalent to the value of the asset transferred or the amount of the obligation incurred.

(i) The debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred.

(j) The transfer occurred shortly before or shortly after a substantial debt was incurred.

(k) The debtor transferred the essential assets of the business to a lienor who transferred the assets to an insider of the debtor.