Full question:
I was a cosigner on a car loan for a relative. The car was totaled and there is a balance of $3700 even with 'gap' insurance. The relative is incommunicado and has not answered a certified letter, so I do not know if she is handling the balance. I am retired and on SS. I have a MH on 10 acres of property that is homesteaded and free and clear. The only other property I own is a 2004 Prius..approx. value $10K. Can a lien be put on any of this property? Can I avoid it by transferring the titles to my mother (who is 92 and lives with me)and by filing a quit claim deed, giving her the 10 acres and MH? The assessed value of the property is approx. $70K. Are these steps necessary?Should I wait until I get a second letter (I received the first letter on May 12, 2009) or take those steps now? The big problem is that the taxes will double for 2009, since the homestead exemption will be lost as it is too late to file for this year.
- Category: Judgments
- Date:
- State: Florida
Answer:
You seem to understand that, as a co-signer on the car loan, you may have no legal defense against a claim made against you. You’re asking whether you should transfer your assets to avoid a judgment lien. It’s important to note that Florida has statutory exemptions that might protect your assets.
A judgment is a court’s final decision in a lawsuit. If you fail to pay a judgment, a creditor can file a lien against your property. This means they can potentially sell your assets to satisfy the debt. The property you own, including your homestead, could be subject to such a lien.
However, Florida law protects certain homestead properties from creditors. Specifically, if your property qualifies for a homestead exemption, creditors typically cannot force the sale of your home to satisfy a judgment. The exemption applies to the value of your home as assessed for tax purposes, with specific area limitations (Florida Constitution, Article 10 § 4).
Transferring assets to avoid a lien can complicate matters and may not be advisable. It’s usually better to have a homestead exemption in place before any judgment is entered against you. If you transfer assets, you might face additional legal challenges.
It would be wise to consult with a legal aid office or an attorney experienced in debtor-creditor law in your area to discuss your situation in detail.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.