Kentucky court allows sale of land transferred for $1 to cover $177,668 debt
A property transfer for just $1 has failed to shield a Kentucky couple’s land from a creditor seeking to recover an unpaid debt. In an October 23, 2026, opinion, the Kentucky Court of Appeals upheld an order allowing property assessed at approximately $210,000 to be sold to satisfy a judgment of $177,667.88, plus applicable costs and attorney fees.
In a recent Kentucky court ruling on October 23, 2026, the Kentucky Court of Appeals permitted the sale of property transferred for $1 to satisfy a $177,667.88 debt. The dispute arose when Members 1st Federal Credit Union claimed that Kimberly A Goodman and David W Hill defaulted on a loan secured by a Pennsylvania property. The credit union bought the Pennsylvania property through a short sale, reducing their debt to $177,667.88.
Goodman and Hill later purchased land in Kentucky, which they transferred to Woodsmoke Acres LLC for $1, but the property was assessed at around $210,000. The credit union argued that the transfer was an attempt to hinder their ability to collect the debt and sought to void the transfer. The lower court ruled in favor of the credit union, ordering the sale of the Kentucky property to cover the debt. The appeals court upheld this decision, stating that there was no basis to reverse it.
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