[maryuhoh84]

My friend is about to foreclose her home. She owns a business and is worried that the bank may be able to put a lien on it or seize it when her house is foreclosed. What can she do to prevent this, or can this even happen? Should she change the ownership name of her business and put it under someone else's name right now, like her daughters or something?

[George_1950]

She may owe the lender after the foreclosure sale; if so, the lender may be able to pursue her individually. She may want to incorporate her business; it will be a separate legal entity and not subject to her individual debts. However, if she were sued and the plaintiff recovered a judgement, the creditor could garnish her wages/pay where she is employed even if she owns it. It is not recommended to place ownership of an adult's property in a child's name when the child is a minor.

[Cvillecpm]

Incorporating after foreclosure has started may be viewed as a FRAUDLENT TRANSFER OF ASSETS... she needs to be VERY CAREFUL that nothing of her business is predicated on her owning the home - like a line of credit or building lease.

If there is a deficiency judgement after the bank takes back the property, she needs to declare BK.

[Fr_Chuck]

Hopefully she already set up a LLC for the business already, if she tries to do it now, it really will not protect anything, since it will be seen as just a fraud.