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If you inherit a house can creditors take that house to pay outstanding debts?
Wiki User
∙ 11y ago
Most states provide some form of homestead exemption against creditors for your primary residence. However, the amount protected varies by state. The inherited property may be vulnerable to your creditors. Your creditors may seek judgment liens in civil court and may be able to record those liens in the land records thereby preventing a refinance or sale until the liens are paid. You should consult with an attorney, perhaps the attorney who is handling the estate.
Wiki User
∙ 11y ago
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Can creditors go after a paid-off car in probate if the house is being foreclosed on?
Debtors can go after the assets of the estate. These assets will have to be liquidated to settle the debts.
If the mortgage on a house is paid do you still have to take it through probate?
That depends on several factors, the main one being the state probate laws, if there was a valid will, how the property is titled, and if the deceased had any outstanding debts.
If you want file bankruptcy on credit cards of a large amount could you lose your house to pay off creditors?
How a home is handled in bankruptcy depends on the type of BK filed, state or federal or a combination of the two. In chapter 7, all nonexempt assets are liquidated to pay creditors. The state or federal homestead exemption would apply in regards to the home. In a chapt. 13, debts are consolidated and a payment plan of 3-5 years is set up to repay creditors. And any secured debts are usually reaffirmed with the lender. You can refer to the bankruptcy statues of your state to ascertain if your home is protected by the homestead exemption amount.
Can you lose your house if you don't pay your credit cards?
In theory yes, a home in some cases can be sold to pay debts, even unsecured ones such as credit cards. This rarely happens, in the majority of cases the homestead exemption will protect a house from creditors. Some states have such as Florida have unlimited homestead exemption others have laws which directly forbid a forced sale of the primary residence. Creditors prefer easier methods, such as wage garnisment or a bank account levy.... Macky (macky83@juno.com)
Who is responsible for any balance if the bank repossessed your father's car after his death?
If your father left a Will, and he had an Estate (house, condo, property, etc.) then the Will goes to Probate and Probate makes sure all taxes on property, also personal outstanding taxes are paid off. It also pays off all creditors. For example: If your father left a Will and he owned a home, or had money in a couple of accounts the Probate would take that money and pay off all creditors (including the bank for the car) and any other debts. Only after this, do you get what is left in the Estate. I do believe the bank had no right to repossess the car after your father's death, but complied with Probate. I would seek legal help on this one.
Can creditors go after a paid-off car in probate if the house is being foreclosed on?
Debtors can go after the assets of the estate. These assets will have to be liquidated to settle the debts.
Are the children responsible for the debts of a parent that has passed away?
Typically the estate is responsible for paying the debts, including the medical bills of the deceased. If a child has co-signed any paperwork regarding medical procedures, they may be held liable. If they hope to inherit a house, they may have to pay the bills to avoid the house being sold to pay the debts.
Can an executor who inherits the decedent's house use assets from bank and brokerage accounts left jointly to himself and other heirs to pay debts solely related to the house?
No. The other heirs would have a cause of action against the executor for self dealing. He should seek a legal opinion from the attorney who is handling the estate before spending estate funds to benefit himself. He may be required to sell the house, pay the outstanding debts relating to it and then keep the net proceeds. Or, he could pay the house debts himself if he wants to keep the property.No. The other heirs would have a cause of action against the executor for self dealing. He should seek a legal opinion from the attorney who is handling the estate before spending estate funds to benefit himself. He may be required to sell the house, pay the outstanding debts relating to it and then keep the net proceeds. Or, he could pay the house debts himself if he wants to keep the property.No. The other heirs would have a cause of action against the executor for self dealing. He should seek a legal opinion from the attorney who is handling the estate before spending estate funds to benefit himself. He may be required to sell the house, pay the outstanding debts relating to it and then keep the net proceeds. Or, he could pay the house debts himself if he wants to keep the property.No. The other heirs would have a cause of action against the executor for self dealing. He should seek a legal opinion from the attorney who is handling the estate before spending estate funds to benefit himself. He may be required to sell the house, pay the outstanding debts relating to it and then keep the net proceeds. Or, he could pay the house debts himself if he wants to keep the property.
Can a child build a house on deceased parents land?
It would be risky to do so without having title to the land. If they are going to inherit the land and it doesn't have to be sold for debts, it could be done.
When a house has a lien against it that is greater than its value does the estate have to pay off the lien or can they walk away from the house?
The estate has to pay off all debts before it can distribute anything to any of the heirs. The estate will have to liquidate all assets to pay off the debts. If it isn't possible to pay all the debts, they will have to show a plan to the court showing how they are fairly dividing up the available assets between the creditors.
Estate responsible for sister's medical bills?
Yes, the sister's estate is responsible for paying the debts, including the medical bills of the deceased. If a relative has co-signed any paperwork regarding medical procedures, they may be held liable. If they hope to inherit a house, they may have to pay the bills to avoid the house being sold to pay the debts.
Can I move into mom's house if she died with out a will and I am only heir?
Depends on whether your Mother owned the house. While you would inherit your Mother's financial interest in the house, if there is a mortgage on the home, then the mortgageholder also has a financial interest. They may want to be paid the outstanding amount still owed on the mortgage.
Will the creditors demand sale of the property?
Creditors will demand a sale of real estate when the personal assets are insufficient to pay the estate debts in full. The catch here is that if there is a will, the estate might not have to use all of the proceeds of the sale. Most, if not all states have statutes that identify certain types of bequests and devises and then spell out priorities in which they must be used to pay the debts. As an example, many states provide that the residuary of an estate must first be used up to pay debts before the money that goes to individuals in specific sums. So, if a will gives one person a specific amount, say, $10,000 and the residuary to another person, and if the only asset in the residuary estate is the house, then the house has to be sold to pay the debts before the $10,000 is touched. On the other hand, if the house is specifically given to one person and the residuary, the same $10,000, given to the other person, then the $10,000 residuary must be used up entirely before the house has to be sold for debts. This is one reason to have a will. If there is no will, all assets are available equally to pay debts.
If the mortgage on a house is paid do you still have to take it through probate?
That depends on several factors, the main one being the state probate laws, if there was a valid will, how the property is titled, and if the deceased had any outstanding debts.
Can I sue my brother if he's the executor if he evicts me and my disabled child i am an heir to the estate?
The beneficiaries of a will inherit the estate after any debts have been paid. That may mean that a property has to be sold. If so, the current residents have to be evicted, and the executor (as the owner of the estate at this time) is the one responsible for doing so.Note that by showing sympathy and allowing you to stay in the house, your brother would have opened himself up to serious legal action from the creditors, and the law.
Debt of deceased parent in Wisconsin?
The states are pretty consistant on this. There are a number of factors to be considered. Typically the estate is responsible for paying the debts, including the medical bills of the deceased. If a child has co-signed any paperwork regarding medical procedures, they may be held liable. If the children expect to inherit a house, they may have to pay the bills to avoid the house being sold to pay the debts.
If you are a co-signer on a loan for a house and you refinance will your old debts be paid off?
Co-signer or co-borrower? A cosigner has no legal right to property, unless their name is on the title/deed. When refinancing a house, if there is a "cash out" transaction, that money can be used to pay outstanding debts. Usually this is a Home Eq. loan, but it can be a refinanced transaction. Although the debts are listed in the paper work, they are not automatically paid, unless there are specific contractual stipulations between the lender and borrower.
