Attorney advised buying a home pre-filing

[shipo]

So, am I the only one here who feels uncomfortable with this thread; to me at least, it sounds like nozar is trying to game the system and shield a LOT of money which rightfully belongs to creditors.

[sophieanne]

shipo - I actually agree with you. I’ve read this thread a few times thinking the same thing. I don’t think it’s appropriate.

[justbroke]

Some bankruptcy pre-planning is okay and quite possibly necessary. The real problem is that nozar already moved and there are a bunch of issues with that. With that much (potential) cash, it may have been better to have stayed in California because let me tell you, unless all your money is in a home, Florida exemptions are horrible!

And, yes, it's a fine line between bankruptcy / estate planning and hindering, delaying or defrauding. However, nozar has consulted with an attorney (or attorneys) and they offered some/most of these ideas. Now, if nozar asked if they could hide the money in a mattress, or transfer for it to an offshore account, that would likely be over the line. For me, at least, it appears to be simply questions as to what is allowed before it would become more like hindering, delaying or defrauding.

We've had cases here in Florida where people put money into a home just before filing and despite the Trustees objection, the court was okay even if it "gave" the appearance. Even the U.S. House of Representatives report on the BAPCPA (2005 bankruptcy law changes) look specifically at putting money into a home on the eve of bankruptcy. While that same report claims to "deter" this, it doesn't completely deter small amounts (under something like $125K... too lazy to look up). But there are even other loopholes using the (married) tenancy by the entireties (TBE) to even circumvent those protections.

I think of it like tax law. Where the legislature has failed to not allow a deduction, wealthy individuals and corporations will hire gobs of tax attorneys and tax accountants to find all those deductions. They'll even risk going to tax court to fight on those things in the gray areas. This is the part of estate and bankruptcy planning that is in the shadows.

In the end, this does remind me of a member from 10 years ago, swampwiz.