Have Judgement against: can't pay:What to do?

[omora]

My Name is Oscar and I live in California:

Hi friends:
Just went to court for Lease couldn't complete. Have judgement against for an amount I couldn't pay even if I wanted. I'd like your opinion on:
1- How do I protect my house (not behind on pmts. positive equity)
2- Cars. Have 3. One old 2 recent ones. Old one valued under 3k. newer ones paying for. not much equity.
3- If BK is un-avoidable. Should I start before collectors start filing liens? What will be the best way to protect what's left?
4- This is the tricky one: Have small biz still going. Not much to salvage, but there is another lease I could breach if I shut down. Should I breach that one and BK on both debts? Is it to risky to wait and try to get out of the other lease?
Appreciate any help coming. Thank you
Oscar

[JETX]

Originally Posted by omora

Have judgement against for an amount I couldn't pay even if I wanted.

I doubt that any RESPONSIBLE person is going to help you to avoid a valid judgment..... ordering you to reimburse someone else who suffered a loss due to YOUR conduct.
Get a second job or sell that 'big screen' and 'bling'.

[bigun]

You protect your house in bk if, the amount of equity is below what your state exempts.
While the bk allows for a lein strip (522f} if it impairs an exemption you'd ordinarly be intitled to-I recommend you not wait that long. You'll be dealing with another set of legal fees and a few more hoops to jump through.
Most bk lawyers give free or lowcost initial consultations. Speak with a few and see what they say.

[omora]

Dear JETX:
Just to clarify, I'll mention what the situation is:
The judgment came from a commercial lease that I couldn't complete. If the business is not giving you enough to even pay the rent how can you live up to the rent?. As far as who's suffering the loss, let me just mention that they are a company worth billions, so I don't believe anybody will go hungry for not getting the rent on a building I emptied years ago. And as far as getting the second job, let's just say that working 40hrs a week it will only take 1330 weeks to pay for it.
So, what I'm looking is for advice to help me keep my two kids from not having a roof. Any ideas?

[omora]

Dear Bigun:
What you mention about &522 helped in getting clear the issue of the house. In my case the equity and the homestead will be greater than the value of the house, so I would think I may ne able to save the house.
One thing is still not 100%: Should I file the homestead rigth away or does it apply to the case by default when I file bk?
Thanks.
FYI: Have appmt with Bk Lawyer.

[JETX]

Originally Posted by omora

Any ideas?

Sounds like you tried to enter a commercial venture.... and it didn't work out for you. Of course, that is no fault of the landlord. And the fact that the landlord won't feel your failure is not relevant.

So, my "idea".... don't toss the dice if you can't afford to lose. You are responsible for your own actions. Accountability is not something that only a bookkeeper does.

[Zigner]

Originally Posted by omora

As far as who's suffering the loss, let me just mention that they are a company worth billions, so I don't believe anybody will go hungry for not getting the rent on a building I emptied years ago.

Oh, gotcha. It's ok to steal from somebody if they won't notice it.

[omora]

Dear JETX:
Well I see that you really have god advice. Too bad is about 4 years late. I was hoping for something more substantial and related to the present condition, but I guess you're more concerned with the ethical part of the problem.
Thanks anyway
Oscar

[omora]

Dear Zigner:
Well, if you consider that trying to protect what little you have is stealing, then I guess I am trying to steal, having said that, can you actually offer some advice?
Oscar

[haplesshome45]

You really have not posted enough details to understand the elements of your situation. So all you get are responses from people who want to make some moral suasion on your situation, which is not helpful.

In general, you indicated your problems stem from a commercial transaction. to deal with that you first have to identify who is obligated on the transaction. If only a corporate entity signed, then only that entity can be held for any judgment. If you signed personally as an Obligor, then that enmeshes your personal assets in the event that the corporation does not pay the judgment.

Moving past that, any business entity that enters into a rental agreement for the rental of commercial space - which seems to be your case - fully appreciates that the tenant may not be able to be viable, so then that is the end of that. I see no point in your "landlord" filing suits against you - if you have no money, then you cannot pay. Now each State has specific laws that pass obligations on the parties. In many states the landlord is obliged to make some reasonable effort to re-lease the space. Did they do that?

Either way, since you now have a Judgment to contend with, it looks like the opportunity to resolve in Court the duties and obligations of the parties to the lease is past. Your old landlord is not so dumb to try to go chase after someone who has no money, as it just tosses more cash down the rathole. Your best bet may well be to go to them and try to negotiate some modest settlement - off therm $1,000 paid out over one year, for example. You did not say how the collections suit evolved, whether you defended on the merits or they took a default, if that is the work of some third-party collector, or whatever.

Remember that if you file for bankruptcy - and if it comes to that you can simply tell them those are your plans - then anything they try to lien is going nowhere, except possibly that their status will go from an unsecured creditor to a secured creditor, which is a bit harder to deal with. Nonetheless, a bankruptcy proposal in which unsecured creditors end up with nothing is the usual outcome of those cases, so once again I suspect the landlord creditor is approachable to a settlement to your controversy, unless he is angry with you (e.g. you decamped in the night and stole his toilets). This is why it is always best to be entirely up-front with others in your business dealings - you get out from underneath hard feelings that get in the way of settlements.

Nobody is going to go spend money to chase after someone who has no money and is on the cusp of bankruptcy proceedings. Once again that is just a fact of life. From a "morality" perspective, the previous posters were entirely incorrect, as any counter-party to a business transaction fully understands that the parties will not profit if the tenant goes under. that is why landlords are typically quite amenable to helping their tenants - if the tenant folds, the landlord loses a tenant and the rents. If your old landlord was being "tough" with you (which you do not say) then that is more likely due to a personality disorder than any logic. I fail to see how pontifications about morality should substitute for rational discussions about resolving business problems.

Nonetheless, you have a judgment against you, which apparently is not recorded as a judgment lien on your property, so you do have to address this issue.

Let us know how you progress. Best wishes to you and your family.