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My life is screwed(in a nutshell)...Need advice!

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    My life is screwed(in a nutshell)...Need advice!

    Here it is...

    I lost my house last year. Lost job in Michigan and had to move out of state to work. I am/was part owner of a business. We filed a lawsuit(which my father funded) to sue them to get my assets/and shares out of company. They dragged the case on for so long that we accumulated 180k in legal fees(of which 100k has been paid by my father directly to attorney - technically these were supposed to be his assets anyway). 80k is still owed to this lawfirm and they filed a motion to leave due to non-payment. Another attorney picked up our case and we have a settlement on record of just over 60k which still leaves money owed to my father short and we still owe 80k to my the attorney. The 60k settlement on record(which hasn't been paid out yet and hopefullly it will) either goes to me or my wife or another party as stipulated on court order- we are having the payment be made directly to my Dad - as it should be because he funded this mess.

    In addition to this, our family has over 80k in cc debt and about 3k in medical bills. There is also debt on this former business that I co-signed for(car) - not sure if payments have been made because I have been scared to check Credit report.

    I want to file Chapter 7 bankruptcy because we cannot afford to even keep paying the minimum balances on CC anymore - it is wiping out all that we have. The only asset we have left is 6k in bank and a car worth approx. 15k(KBB value private party). We are presently renting a home and my income now is just over the limit for Chapter 7 but will probably be ok with the means test.

    How do you think the courts will view this settlement when it comes time to file BK? It will be directly paid to my Dad. However, we have to discharge the prior attorney bills. What a mess!

    Thanks for any help!

    #2
    In essence if the money is owed to you legally by virtue of the courts it is an asset of your bankruptcy estate, which means the trustee will probably intercept any effort to have it sent to your father, even if your father did fund this.

    This is something you really need to discuss with a bankruptcy attorney, there could be some way to do it and protect it but I'm not sure. It might be better to wait until after it is paid and probably up to a year later to file.
    May 31st, 2007: Petition Filed by my lawyer
    July 2nd, 2007: 341 Meeting Held
    September 4th, 2007: Discharged and Closed.

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