If I sign over all of my personal property to another person, can anything happen to that person if I am sued for default on a debt?

UPDATED: Mar 3, 2012

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If I sign over all of my personal property to another person, can anything happen to that person if I am sued for default on a debt?

I have been served with papers to appear in court for a $30,000 credit card debt and I do not own any real estate or have any savings in the bank. All I have is what I own in my apartment which is not in question at this time as there has been no court date just a hearing scheduled.

Asked on March 3, 2012 under Bankruptcy Law, New Jersey


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

It is possible that the other person could be sued 1) to reclaim the property you signed over to him or her; and 2) for additional compensation (e.g. for the cost of the lawyers who sued him). The law does not permit someone to commit fraud on their creditors, such as by hiding or signing away assets; if you sign your property over once you become aware of a lawsuit, the creditors can often have that transaction set aside as well as seek other damages.

If you are paid fair market value for the property, that is different--then it is a bona fide (or legitimate) transaction. The buyer can keep the property and your creditors will try to recover the proceeds of the sale from you.

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.

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