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lifeestate1 Asked October 2023

After setting up a life estate with my daughter in Alabama, can unsecured unpaid credit card companies put liens on the property?

All payments up to date now and property has a current lien for a line of credit, which is secured. if liens are granted on me and i die will they then be terminated on the property?

MargaretMcKen Oct 2023
You don’t want to take ‘no’ for an answer? If you own the property, subject to your daughter’s life estate registered on the title, then the lien will be put on the property title too. The title stays in your name. It doesn't make your daughter liable for your debt. The company can apply to bankrupt you, the property is sold, the debt amount is taken from the proceeds, and your daughter tries to work out what to do with the mess you have left her in. Attempted fraud springs to mind. So do lawyer's fees. Bankruptcy sales are usually way under value, not usually a good strategy. I don’t think twisting will get you out of the debt.

lifeestate1 Oct 2023
i understand the line of credit must be paid but im out of funds after that and have read the property is hers while given in good standing and any credit card liens will not follow her?

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Isthisrealyreal Oct 2023
If they sue for payment and win, yes, they can put a lien on the property.
lifeestate1 Oct 2023
will the lien the be terminated when i die leaving my daughter lien free?

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