I am still trying to sort out options to chapter 11. I have a 1 million judgement by default on a home foreclosure deficiit which can be exercized on May 18 by the bank.
I am 61 and a sem-retired MD. 0 net worth I am on total disability
from prostate cancer. All of my income is from disability and it will continue until I am 65. In tennessee medical disability income is exempt from judgements. I do not qualify for 7 or 13. we don't think that the bank will agree to a chapter 11 plan. i would also lose my disability income exemption in a 11. My attorney said 2 best option now may be settlement bank which we are working on or just take the judgement. I have questions about the consequences of the judgement. Here are the facts
By state law my disability income is exempt from garnishment
. so the bank cannot get any of that.
The assets we have now would be within the judgement exemptioms except for our current house which has about 50K of equity
. It will be paid off in 4 years and will be worth 400K. It is owner financed
My income is and will be decreasing. I have no future inheritance. Pension
and SS income is also exempt in tennessee.
My wife, who is also party to the judgement does not work but is expecting a large inheritance sometime in the future years 500-800K.
So my questions are, if we take the judgement.
I understand that the bank can put leins on my home and my cars? So when sold, they get sale proceeds.
Are they still able to seizure money from my bank accounts?
Could the bank get part of my wife's inheritance in the future?
If I am able to save money from my disability income to buy another home cash. Can theytake that money or put a lein on the new house? The cash would come from exempt disability income
How about if the cash came form wife's inheritance?