Skip to main content

Texas Deficiency Judgment and Debtors rights

Houston, TX |

What are debtors rights when a deficiency judgment is issued to collect the balance on the loan by the lender who has foreclosed debtors real estate property.

If debtor has cash in the bank account and if the debtor uses the cash to pay off the other debts (credit cards, car loan, student loan) will that be considered as a "fraudulent conveyance" under the "Uniform Fraudulent Transfer Act"?

+ Read More

Attorney answers 4

Posted

Good question - in a bankruptcy it might be more of a question of a preferential payment - meaning your payment to one creditor as a preference may be avoidable (reversed). Fraudulent conveyance is more applicable to transfers of assets not payments of debts. Get a BK opinion - but in general - the longer the period of time between the payments and the BK filing, the less likely a finding of a preferential payment.

Legal disclaimer: This is not legal advice and is not intended to create an attorney-client relationship. The post is only an opinion. You should speak to an attorney for further information. The poster is licensed only in Illinois. Please visit www.bernardjconway.com for more information about our services. If this post is useful to you, please remember to upvote it.

Posted

Good question - in a bankruptcy it might be more of a question of a preferential payment - meaning your payment to one creditor as a preference may be voidable (reversed). Fraudulent conveyance is more applicable to transfers of assets not payments of debts. Get a BK opinion - but in general - the longer the period of time between the payments and the BK filing, the less likely a finding of a preferential payment.

Legal disclaimer: This is not legal advice and is not intended to create an attorney-client relationship. The post is only an opinion. You should speak to an attorney for further information. The poster is licensed only in Illinois. Please visit www.bernardjconway.com for more information about our services. If this post is useful to you, please remember to upvote it.

Posted

Not the student loan. And only if you then file bankruptcy within 90 days. i doubt it would arise, but interesting.

Disclaimer: This answer does not constitute legal advice. I am admitted in the States of New York, New Jersey and Massachusetts only and make no attempt to opine on matters of law that are not relevant to those three States. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. Consult an attorney in your locale before you act on any of this advice. You should not rely on this advice alone and nothing in these communications creates an attorney client relationship.

Posted

If no court order exists directly you how to pay your debts, you have the right to pay your debts as you choose. If the judgment debtor doesn't get a turnover order, or other court order restraining you from use of those funds, then you are in the U.S.A.! Pay who you want.

If you are in Bankruptcy or about to file bankruptcy, then your payment to other creditors could be considered a preferential payment.