Legal Question in Business Law in California

I'm not sure what good it does to indemnify yourself. You still owe the money.

I think you are trying to use legal terms you don't understand. Your question makes no sense.

If someone else indemnifies you, it means he has agreed to pay some or all of your legal bills if you're sued, and/or of any damage award if you lose. It wouldn't protect you from being sued; it would just make the lawsuit less burdensome financially. That's important, but it sounds like you have something else in mind.

Indemnifying yourself is a non-sequitur, since there is no point in making an agreement with yourself to pay your own bills. Saying you're self-indemnified wouldn't limit anyone else's rights to sue you. The interests of justice would not be served by giving people that kind of power.

Depending on the type of claims you expect your past employer to make, you may want to consult a bankruptcy lawyer. Even the threat of bankruptcy can be an effective tool in settlement talks, as long as the threat is credible. A bankruptcy lawyer can also advise you about what you may and may not do to protect your assets and income.

Good luck.