Alternative to filing BK...not filing implications

[adventurer]

What are the results of not filing BK ?... considering:

a) Home is not worth what I owe; therefore a foreclosure sale and defficiency judgement would likely occur

b) New start up business failed, consumed all of my credit cards, and is not worth what I paid for it.

c) Transfer my remaining assets (car, etc) to my Mom.

d) As a sigle person, exercise my feedom to move anywhere...Go teach English in Japan for a few years

Wait 1-2 years to file BK if the creditor pressure becomes intolerable....or just plan to live off of cash and not credit the rest of my days

[HHM]

a) Generally a deficiency is not allowed in the foreclosure context (sometimes a 2nd mortgage can get a deficiency). It will depend on your state's law, but for the most part, the rule is, no deficiencies can be collected.

Issue: where would you live, could you get a cheapter place, or can you still afford your current home?

b) If you default on credit cards, you have about a year before aggressive collection takes place, and possible lawsuits and judgments.

c) What kind of assets are we talking about...aside from the fact that intentionally transferring assets to avoid creditors is fraud!

d) Generally, running away from your problems is not the best option. It is probably better to deal with this now instead of later. You would be truly free if you cleared this up now, and then left. Otherwise, you will have this lingering history following you around as you travel.

[GoingDown]

a) Generally a deficiency is not allowed in the foreclosure context (sometimes a 2nd mortgage can get a deficiency). It will depend on your state's law, but for the most part, the rule is, no deficiencies can be collected.

Issue: where would you live, could you get a cheapter place, or can you still afford your current home?

b) If you default on credit cards, you have about a year before aggressive collection takes place, and possible lawsuits and judgments.

c) What kind of assets are we talking about...aside from the fact that intentionally transferring assets to avoid creditors is fraud!

d) Generally, running away from your problems is not the best option. It is probably better to deal with this now instead of later. You would be truly free if you cleared this up now, and then left. Otherwise, you will have this lingering history following you around as you travel.

Definitely DON'T transfer any assets to anyone!!! Being unable to pay your bills is a civil matter. Don't make it a criminal matter by committing fraud.

You can sell your assets for full market value to anyone, and then use the cash for your personal living expenses, etc. Keep receipts in case you need them later on.

[Spartan]

Fraudulent transfer is not a crime, in the legal sense. It just means the transfer can be reversed.

[Spartan]

What are the results of not filing BK ?... considering:

a) Home is not worth what I owe; therefore a foreclosure sale and defficiency judgement would likely occur

b) New start up business failed, consumed all of my credit cards, and is not worth what I paid for it.

c) Transfer my remaining assets (car, etc) to my Mom.

d) As a sigle person, exercise my feedom to move anywhere...Go teach English in Japan for a few years

Wait 1-2 years to file BK if the creditor pressure becomes intolerable....or just plan to live off of cash and not credit the rest of my days

Statue of limitation on judgement is 10 yrs for most states and can be renewed. A long time to wait, unless you do not plan on owning any asset for quite a long while.

The thing is, things change in life. You may meet someone and want to have more in life. Then you will have to clean up the mess you have left behind years ago. It is better off that you clean up the mess early on and put it all behind you, and be totally free to start over.

I wish I have cleaned up my mess a few years ago. I would be home free long ago. Sure, I am judgement proof and worry free. But I could be a lot more.....

[BK'd-Betty]

You will re-bound much more quickly if you take care of this now, but settling the debts or filing BK.

If you just run, your credit will be in the toilet and be worse than if you had BK'd and for much longer.