I am current on all bills (and have been) but one. I have not paid them for almost two years (my mortgage) and they have not gone to sheriff sale yet. I owe (they say) almost $500,000.00 on the mortgage. I have no assets currently but am negotiating a worker comp settlement. I have been told by different attorney’s different things. I also have disability retirement income from my former employer and the SS administration–all disability. The lawyers say conflicting things. Bankruptcy attorney says that they can go after the settlement if they get a deficiency judgment. The comp attorney says no–all of my income and the potential award (which falls far short of what is owed) are exempt from collection and judgments. The theory so far is to deposit things in separate accounts and do not commingle funds at all. Then, should something like this occur, file bankruptcy and protect the funds. Of course, I am going to have to get another home and make sure that it is not above the statutory bankruptcy limits for being disabled and filing for bankruptcy. What is your opinion on all this? I also have a third attorney to handle communications with the mortgage holder. I am probably going to ask him to evaluate whether they have legal standing to foreclose (why are they taking so long with me and no one else?).
My current plan is to put all three incomes (the settlement is number three) into separate accounts at different institutions. I will pay cash for another home (if it turns out that they can legally foreclose this one or finally do so). If they ever come after me I will file for bankruptcy protection (there will not be any assets left or little by then to make it worth pursuit and I will wait until they do get a judgment). None of this constitutes “hiding assets” for bankruptcy as far as I can tell? The question is, “Am I planning this right”?”
Instead of asking me you need to click here to find a local bankruptcy attorney. The comp attorney is NOT the the person to ask for bankruptcy advice.
Whatever your plan is you need to work hand-in-hand with your bankruptcy attorney to make sure everything is legit. Depositing things in different accounts isn’t the issue here, what the law says, is.