Need advice what to tell the Law Firm...

[salsa]

History:
Lawsuit filed 07/2010, judgment issued May 2011. I've been trying to work out a settlement for some time, but no agreement yet. I have told them recently that I am exploring bankruptcy and will let them know what I'm going to do. I have an asset that I'm working on selling, but won't know if that will happen until late August.

So my question, is what do I tell the law firm in the mean time??? I'm not comfortable telling them the truth as I really don't want them thinking I have anything of value. My hope is that I an sell the asset, settle with all accounts left and be done. If all won't settle, bankruptcy it will be.

Any suggestions on what to say are appreciated.

[sunshinepa]

Sorry to hear you got a judgement.

I don't really know the law (hopefully one of the lawyers on here can help) but I wonder if you can sell something after a judgement? Did you have to do any paperwork that might have included the asset? If so, I would think that could mean trouble if you sell it???????

I am not sure I would tell them anything that is not required by the court where the judgement was issued!!!

Good luck!!!

[AngelinaCat]

Have you been through the Discovery process? If you have been through a deposition, or been given a list of questions, 'Interrogatories' to answer concerning your assets, then yes, you could be in trouble if you sell one. Have you talked to an attorney about your situation?

[AngelinaCatHub]

A Judgment is one thing, collecting is another. If your asset will cover the Judgment, sell it and settle. If you are attempting to deal with them, be sure to keep copies of all your correspondence.

They can sit on the Judgment, file a lien to your house, or attempt to attach property. They can depose you as to what your bank accounts are, what you own, and have in assets. As far as selling something, unless you are attempting to "hide" an asset, you are doing nothing wrong. Make sure they know you are selling something to help settle this Judgment so that they cannot accuse you of hiding assets.

Best to keep trying to get them to settle for less. Once you do come to an agreement, best be able to pay at that time or at least draw up a payment agreement. Once the Judgment has been settled, they will give you a release. 'Hub

[salsa]

No haven't been through any of that, questions, etc. From what one attorney has told me, doesn't sound like they could attach to this particular asset. I just don't know what to tell them. I said I'd let them know what I've decided after consulting with bankruptcy attorneys. As mentioned, if I can settle that is still my best option, although won't have the money until possibly August.

[salsa]

I guess worse case scenario I can put this one account into a Chapter 128(available only in Wisconsin) for a few months until a) I can get the money to settle or b) file a 13....

They will settle, it's just the amount given I currently don't have that much....

[frogger]

You don't tell them anything. Most firms that get judgments are going to try to garnish your wages, not take your assets. If you're going to file, do not settle with them.

Your mileage may vary......

[salsa]

Frogger, Yes, this is an all or nothing thing. Two accounts are with this law firm(one has a judgment). Another account is with their client, and another, I'm not sure. I will need to get all settled or at least all but one or I won't do it. As one attorney said, if they won't all settle take the money from the asset and throw it into a retirement account and file.

[treehugger1]

Hmmm, I think I would double check with that attorney. Taking a non-exempt asset and rolling it over into an "exemption" when one knows of a judgment against them can be considered a purposeful and knowing fraudulent transfer of a non-exempt asset. Trustees are pretty good at finding such transfers. I can't say what the case might be in your situation, I'm just saying.

[salsa]

Another attorney has also agreed with that, or put against the house. But I will do some more digging...

[dman]

What kind of asset are we talking about? I know you don't want to give specifics, but I'm just kinda guessing here.

First of all, double-check to see if the asset would be exempt in a Chapter 7 filing. Perhaps it's a vehicle that has its own exemption. Or maybe it's some property (that's not your homestead)...could it be covered under the wildcard?

Heck, maybe it's a boat. And maybe you're in a state that won't allow federal exemptions, and gives you virtually no wildcard exemption. Are you pressed for cash? Are you going to sell it to a complete stranger for a fair value (it's fine if it's below book value)? Yes, you could sell it to a relative...but that makes things more tricky...best to sell to a stranger. Anyways...people sell things all the time because they could use the cash more than the particular item. Now, don't go and do something questionable with it (dumping it all into a roth ira could be a no-no, check with a lawyer before you do this and/or before you file). If you use it for normal living expenses, then that's probably ok. I'm thinking things like getting some things fixed around the house that you've been neglecting (assuming you're 100% sure you want to keep the house). Replace old appliances that need replacing. Get a more reliable car if yours is on its last leg. Stock up on food, get dental work done, etc. etc.

Also...I work under the "don't ask don't tell" policy. If they don't ask me about my assets, I don't tell them about my assets. IF they ask, then ya gotta tell (but just cause they know you got a big honkin' boat, doesn't mean they will take it the day you tell them about it...or that you can't sell it to try to raise cash to satisfy the judgement). Until they are able to legally take your property, or put a lien on it...it's still yours.

Standard disclaimer: I'm not a lawyer. I am an idiot. Do not take my advice. I'm not responsible for what happens if you blindly follow an idiot. Blah blah.

[salsa]

Its an animal. Purpose of selling it would be to hopefully settle all credit card debt left. If I can't settle all, then I wont settle any and file chapter 13.

I guess it's called expemption planning and I would be moving assets around. It would need to go into a ERISA qualified retirement account.

I also asked about our collector car. Can sell for market value, and pretty much use money to fix stuff up around the house, etc and that is all ok.

[dman]

Is it a work animal? Could possibly fall under an exemption for "tools of the trade."

If you haven't already, I would seriously schedule consults with some bankruptcy attorneys. You already have a judgement...have an asset you're worried about...and a POSSIBLE resolution is about two months away. If there's any way you could possibly qualify for a Chapter 7...the worst would (probably) be over in about a month and a half (341 in about a month, another couple weeks for the trustee to give a yay or nay). It'd be completely over in about three months (well, the deadline for a creditor to object to a discharge of their debt is 60 days after the 341 meeting). You're considering selling assets to (maybe) settle debts...so if the trustee got to keep some of your non-exempt assets...same diff, right?

[salsa]

No couldn't fall under tools of the trade. We wouldn't qualify for a Chapter 7 most likely. No if we sell and can't settle, would put the money in a protected retirement account. I have consulted 3 attorneys so far. My goal is to try and settle and if not, put somewhere safe (retirement account or another attorney mentioned the house)