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my spouse has handled my financial affairs for years. Unfortunately, he got an unconventional loan on some of my commercial/residential (muli-use) property., with a person who he was unaware had a family trust issues with an irrevocable trust. He would have never entered into the contract with this person had he known relitives were involved. Now, he's been told, by the family members they want their money in full & no nagotiations to roll over the note will be considered. They will simply forclose on the property. This is when my spouse had to come to me, given my corporation, as well as his sits on the premises of said property. Do I have any rights against these people, since after all I didn't even know of any contract & as I stated above & my spouse knew nothing of them either? Thanks.
State/Country relating to Question: California Already Tried: My spouse has tried bankruptcy, chap 13, to stop some of the forclosure, but didn't expect explained balloon request to be paid in full, in my original question, now my spouse simply wants to convert to a chap 7 Bankruptcy. I have not filed a bankruptcy.
Did your spouse get conditions with the note that the other person signed off on? In other words, although it is an "unconventional" loan, are the conditions of repayment evident, or can the holder of the note demand payment at any time?
The holder of the note can't demand payment at anytime.
Then how is the holder of the note demanding payment?
Since it is a note for two years only, the family members now holding the trust, now want the entire principle back., since two yrs. has ran out. It is implied in the contract that the original lender could have extended the note, at 8% per year., if she wished to but she was not obligated to do so, however, this person now has dementia according to family members who have now taken all her money & thrown her in a home.
One final question before I give you my answer. Is the property that your spouse took the loan out on in both your names or just his?
Said married man with as soul & seperate property, however, I owned a paper which I did not record, which states both of us would own it. I originally signed the property over to him, because I didn't want anything in my name., because I didn't want it to adversly harm my pension.
Since you are in California, a "Community Property" state, your spouse's debts are considered your debts for the purpose of collections. That means that unless the property was purchased pre-marriage, both you and the spouse own the property regardless in whose name the property is actually in (unless there is either a pre or a post-nuptual agreement that says otherwise). Because the name, at least on paper, is solely your spouse's, however, the lien holders are unfortunately free to move on the note and demand payment. Although you are a tenant (or co-owner) of the property, since a legal owner of the property got a valid note on the property, you cannot unfortunately stop the process. Even if you have your corporation on the premises, since you did not have an indivisible part of the property, you cannot block the sale or transfer. In addition, there is no Fraud averred here. Even if the note holder does not have dementia, there is no evidence that shows that she would have extended the note against you--in fact from your language the note was supposed to have come due and the note holders are simply trying to collect their debt. Other than filing Chapter 7, you cannot stop the lien holders from collecting. I am sorry. Sincerely, Dimitry Alexander Kaplun, Esq.
Attorney
JA Mentor, Licensed in PA & NJ, specialize in business/contract disputes, estate creation & admin