Homeowner sold home in FL and took second/note for 200K. Buyer
has defaulted, home foreclosed on. Buyer now saying will file BK. Holder of
second asking if should get judgment on note, if worth pursuing? Creditor has a choice between getting a judgment which would force the
debtor into bankruptcy, or waiting to see if debtor files first,
saving creditor the expense of getting a worthless judgment only to
have it discharged in bankruptcy. Florida has extensive personal
exemptions, including a head of household’s wages even after placed in
the bank, which limit enforcement of judgments. Of course, if
creditor knows that debtor has a bundle of nonwage cash in the bank
that he just isn’t paying his mortgages with, which he would lose if
he carried out his threat to file, go for it!
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