Annuities and Bankruptcy

[carybaskin]

Newbie here....question;
I loaned a guy $175,000 guaranteed by his $1,000,000 annuity.... I have signed, notarized loan docs and his annuity info...what I'm wondering is can he file bankruptcy to protect his annuity and leave me hanging or does a guarantee against an annuity stand in Texas....annuity thru New York Life? One of his friends gave me a veiled threat that he could just file bankruptcy if I pursue legally.
Thanks in advance for all input!

[justbroke]

I am not an attorney and this is no substitute for sound legal advise from a licensed professional licensed to operate in New York under New York Law or the State under which any litigation would occur.

Having wrote that, I don't know what type of annuity was pledged as collateral. I don't know how State law operates with respect to this annuity (especially if it's a retirement related annuity).

My personal opinion, not legal, is that you still pursue all legal routes. Many people "threaten" to file bankruptcy, but not all of them actually do so. You may be able to get a judgment and then record a judgement lien. Then you may be able to levy against certain property. Too many factors as to just what you can do, under which State the "contract" laws apply, and just what the debtor will actually do.

At least, those are my thoughts. I personally believe that doing "nothing" is not an option (at least for me). Maybe despritfreya has a professionally informed idea?

[despritfreya]

I have to agree with JB. Too many unknowns:

1. If you are secured by the annuity, did you properly perfect your lien? Can one even lien an annuity? How do you enforce such a lien? All questions an attny in your state may be able to answer.

2. In general, is the annuity protected by some state exemption? If it is not and he files Chapter 7, the Chapter 7 Trustee will have something to say about it.

3. Regardless of any exemption he claims in bk, if your lien is not properly perfected under state law your lien may be worthless if he files bk.

You would need to get a copy of the annuity and your loan documents and take them to a qualified attorney to determine your rights as it relates to any lien you believe you have.

Des.