My wife has a $5,000.00 judgement against her for past credit card debt. Both our names are on our house mortgage. The judgement is solely on her. My question is will this judgement attach to our home if we go to sell it in the future?
Answer
Judgment has already attached to the home; it is a lien on the real property. The judgment will have to be paid when you sell the property.
May I suggest an alternative? Why doesn't your wife resolve the judgment and settle for less before you sell it? How old is the judgment? Depending on age, most creditors will settle for 50% to 80% of the judgment. This would be somewhere between $2500 and $4000.
I can help resolve this for a reasonable . Please contact me at [email protected]/* */ if interested.
Answer
If you bought your home during your marriage, and the judgment is only against your wife, the judgment does not attach to the home so long as you are alive. This is called "tenancy by the entireties". The judgment does not have to be paid if you sell it in the future, or prevent a refinance. Bad credit will prevent a refinance, however. Your wife should consider options to resolve the judgment whether by saving to settle it or by filing bankruptcy, If you should pass away before the judgment is resolved, the judgment will be a lien on the house which will have to be paid when the house is sold.
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