Paid down equity in our home - problem?

[PoorGrammyinBK7]

We need help. Maybe some of you have had similar problems:

We are probably filing BK because we are now under a judgment from an old business debt/lease in another state,
Are we gonna be stuck with 2 BK's on our record because of this? Has anyone tried to ride it out if you are pretty much "judgment-proof? We might could do that for a while - till next year, but I do not know what we would be in for as far as harrassment, etc...

Lawyer says an extra payment on our home last Christmas - with a cash gift (not to hide assets - but to get our payment down - by not having to pay PMI - private mtg ins) may cause a red flag in a chapter 7 and wants to file a 13. He said we could file a 7 later. We had no bad intent in this and I don't understand why we cannot just file Chapter 7.

ANY help you can give would be MUCH appreciated. Thanks...............

[lrprn]

1. If you own a home, cars, and are working, then you are not judgment-proof. Liens can be put on property assets and wages can be garnished to pay off the judgment already approved by the courts against you.

2. I'm so sorry to hear that you are tied up in this very sad situation, but unfortunately the law is emotionless. If you were legally responsible for the lease and do not have anything in writing that the owner said he leased it again and you were no longer responsible, then your story makes no difference to the court. That's why the judgment went through so quickly.

3. I suggest that you meet with several other experienced bk lawyers in your area before making any final decisions about what you are going to do. Always best when a business is involved to get multiple opinions from several business-savvy bk lawyers before pulling the bk trigger.

Keep us posted on what happens with your case and hang in there. We're here for moral support and will help you sort things out as best as a bunch of non-lawyers can.

[PoorGrammyinBK7]

?

[CindyLou]

talk to another lawyer! If you have ulimited homestead then putting your money back into your house is nothing you can't do. There is nothing wrong wtih changing non-exempt assetts into exempt assetts.

See what other lawyers have to say asap b/c you need to do something "yesterday".

[PoorGrammyinBK7]

thanks

[PoorGrammyinBK7]

oops

[Flamingo]

The complication you have here is that some of this was business related and you really need an experienced lawyer in your state to go over the details you provide here. Divorce and business matters, to name examples, involved in BK really make things quite complicated and if I were you, I would consult with several attorneys and ask questions like crazy at each appointment.

As lrprn stated, the court doesn't really care about any emotional issues involved in your BK and don't really care what you think or not whether an action can be perceived as something you state it isn't. It's all cut and dry and based on the figures in front of them and any proof given. Protect yourself and get several legal opinions.

[PoorGrammyinBK7]

oops

[PoorGrammyinBK7]

thanks

[PoorGrammyinBK7]

I think he may be trying for a big tax write-off - he knows we don't have anything - or at least we have tried to tell him.

Here's a question: If the commercial landlord padded his books with "cleaning fees" (for cleaning that we found out was never done), maintenance fees (same) all allegedly done by his own dummy companies - and threw in 3-4 extra months of rent on the lawsuit - AFTER it had been leased to a new tenant - and then adds interest to all that and writes it off - isn't that tax fraud????

Hmmmmnn - not only has this guy been dishonest in his lawsuit against us (which, because we had no money to defend properly - he won) - but NOW he may be lying to the IRS too - after we BK and are deemed officially "uncollectible. Does that make sense??

[PoorGrammyinBK7]

Just thinking - if this guy who has won judgment (lawsuit full of lies but he won because we had no money to defend), knowing all along that we could not pay it - really just wants to "pad" this debt as high as he can get it and then officially declare the debt uncollectible and write it off at the highest point possible ....

In the lawsuit, he had several of his own dummy companies' charges for work that was NEVER done - and I have a witness... With all these being false charges .... would that also be TAX FRAUD if he writes it off after we BK??

Because we have a witness who has said they would be willing to give a deposition....

[AngelinaCatHub]

PoorGrammy, you have private mail.

[keepmine]

He likely took the writeoff for the applicable tax year when you went into default. How he arrived at the judgment is a nonissue unless you appeal the ruling. I'd waste no time worrying about this angle.
Were I you, I'd try and get a delay on the asset exam. Just send a letter CRRR stating you're having trouble locating all the documents and need another 30 days. Send one copy to the lawyer and another to the judge.
I think your lawyer is full of it. You can spend cash to pay any debts you choose as long as you're outside the 60 day preference window and, if you reaffirm the HELOC, the bank is out nothing.

[PoorGrammyinBK7]

good idea

[PoorGrammyinBK7]

Thanks every one