What can they do so that someone does not lose a house to creditors?
Question Details: I am friend whose mother is in the hospital right now in a coma. They do not think that she is going to make it. They have hospital bills that are reaching almost $400,000. All of the bills are in her name and the house is also in her name. My friends father's name is not on it at all. Suggestions?
There probably is nothing you can do, unfortunately, based on what you write. The problem is, anything you could possibly have done (e.g. transferring the home to a child; putting it into a trust) is something that must be done well in advance of incurring the bills. Once the bills are incurred, any actions taken to hide or protect assets (like a house) from creditors (those to whom money is owed to; e.g. the hospital) are seen as "fraudulent transfers"--that is transfers done to cheat or defraud the creditor out of the money it is owed. Fraudulent transfers can be undone by the courts: they can reverse the transfer so that the creditor(s) can get at the asset (e.g. the house) and get the money which they are owed. At this point, already having $400k in bills, if you do anything to the house (such as, again, transferring it to a family member, or selling it to a family member for far less than its far value) would be something that the creditor(s) (i.e. the hospital) could attack and have reversed.
Rate This Answer: Not Yet Rated
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.
Helping 20 Million Americans a Year for 20 Years. FREE!