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Question
Dear sir:

Here is my situation. Myself and 2 other partners bought a commercial building in 2003 and signed personally. One partner filed a personal bk due to his wife's terminal illness and subsequesnt debts. I did not keep the books nor was I a signer on the account for the llc. All payments were current until Sept. 2012 when my partner quit making payments because the building was not producing revenue and we were unable to sell it. I just received a default judgment of roughly $500k and am expecting garnishments and levies to come shortly. My wife has a good job and everything has been in her name for years and has a Trust. Our Trust attorney did this because I am self-employed and work Int'l, so it was his advise for me to not own anything. I do have an IRA, annuity, and a variable life annuity, all judgment-proof. My questions are: 1) what can I expect to happen next? 2) Is my family protected? 3) Is there a legal avenue, including bk, to vacate the judgment? Thank you for your time.

Answer
Hey Tom,

I am not an attorney but it sounds to me like you are very protected. Your family should be protected unless your trust was not set up properly or if you just recently set up the trust. If you trust was set up way before all of the bad stuff happened then you should be ok.

The next thing that will happen is that the creditor could seek for wage garnishment etc. You can let them do it but it sounds like you are better off to file a lone bankruptcy, meaning without your wife. You will want to speak to a good bankruptcy attorney to do it the right way. A chapter 7 would be better as it would wipe out the judgement entirely. If you make too much money then you could include the judgement in a chapter 13 bankruptcy which is a restructuring of debt.

If you are making too much money to file bankruptcy, then the next option would be to try and settle with them for 10 cents on the dollar. If they know that you are going to file they may be more willing to settle and you can avoid a bankruptcy if you need to. There are many options to pursue depending on what your tolerance levels are to bankruptcy. Hope that helps.

thanks
Brian

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Brian Pitcher

Expertise

I can answer all questions related to Residential Real Estate. In particular I am an expert in the loss mitigation side. I meet with multiple homeowner on a weekly basis and guide them through the issues of being upside down on their mortgage and what they can do to better it. I can answer questions on Loan Modifications, Short Sale, Foreclosure, Strategic Default, Deed in Lieu. I can also answer questions on the buyer/investor side of things in regards to homeownership or home flipping. I can also answer questions regarding the 1099C or cancellation of debt that homeowners get from a short sale or a foreclosure.

Experience

I run a team of agents called the Pitcher Group, out of Salt Lake City. We specialize in Short Sales and helping sellers get out of tough situations. We have closed over 100 short sales in the past 3 years with our team. I also am an owner of a Short Sale Negotiation company that helps process short sale transactions for Real Estate Agents all across the country. I understand the investment side of Real Estate as I have bought and sold many rental type homes over the years. I also rehabilitate homes and flip them. We usually have 1 to 3 properties going at any given time. Our completion time from bought to sold is usually less then 4 months.

Organizations
I am a member of the national Association of Realtors on the national level and the Salt Lake board of Realtors on the local level. I am a member of the Short Sale Specialist Network as well as multiple short sale mastermind groups locally and nationwide.

Publications
The Short Sale Specialist Network www.savemyutahhome.com The Truth about Short Sales, Loan Modifications and Foreclosures (an ebook that I wrote)

Education/Credentials
Bachelors Degree from the University of Utah in Spanish with an emphasis in Economics. Specialized and on going study of loss mitigation tactics revolved around the banking industry and real estate including FDIC.

Awards and Honors
Bronze Home sales award in 2008 for Keller Williams Gold Home sales award in 2009 For Keller Williams Triple Gold Home sales award in 2010 For Keller Williams Triple Gold home sales award in 2011 For Keller Williams Top Sales agent individual award in 2010 For Keller Williams I have been asked to speak and teach other realtors how to handle short sales for Keller Williams International and also at my local board of Realtors.

Past/Present Clients
I have over 100 successfully closed short sale transactions.

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