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Subject:  Re: I'm Drowning...advice on refinancing mortgag Date:  8/1/2010  12:33 AM
Author:  joelcorley Number:  298714 of 312706


xtn wrote, I've always wondered... can't a person wait until after he's revealed his accounts to the court, and then immediately run out and open a new account and transfer his money into it before all the other accounts get frozen up?

I'm guessing there are methods the court uses to prevent this, but I'm curious what they are.

You wrote, I don't understand the goal.

Once bankruptcy is filed, creditors cannot procede with collection attempts. Bank accounts aren't "frozen." It is still possible to pay routine expenses. Continued use of credit accounts or obtaining new accounts would be fraud.

I don't think xtn was referring to BK - just to the judgment.

Ironically xtn lives in one of the few states where doubloon1214 might be more or less "judgment proof" (never liked that term, because it's really nonsensical), assuming she responded to any complaints and followed court procedures. In Texas, you cannot garnish wages for a debt and there are substantial exemptions you can claim for your home, cash and personal property among other things. If you are more or less living paycheck to paycheck here beyond what you have in your house, car and retirement accounts, it's next to impossible for a creditor to seize anything from you ... at least until you die.

Unfortunately doubloon1214 doesn't tell us where she lives. But she can go to this site ( ) to figure out more or less what to expect when it comes to collecting on bad debts if she's thinking of defaulting...

- Joel
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