Legal Question in Bankruptcy in Florida

My wife is being sued in Admiralty court for a B.S. personal injury by a former friend which occured on her boat. Our atty, after 25k in legal bills without so much as a deposition, is encouraging her to settle or declare bankruptcy. Plaintiff is asking for 250k plus future medical care. We have enough debt to zero out the equity in our NJ home and can file for bankruptcy in Fl which is our legal adress. If we file prior to any judgement how would this affect future earnings in chapter 13 and could we block any payment to this slickster. All attorneys involved are determined to turn this into a chapter out of Bleak House. Any advice would be appreciated.


Asked on 12/09/09, 2:10 pm

2 Answers from Attorneys
Steven Meyer CPLS, P.A.

You may qualify for a chapter 7 bankruptcy, which would probably be preferable to a chapter 13. In a chapter 13 bankruptcy, you would have to pay back a portion of your debts. This might mean that you would be paying a portion of this injury claim. You may still have to litigate that claim to determine how much is owed on that claim.

It's a complicated situation. We handle a lot of bankruptcy cases and would be happy to discuss the situation with you. We offer a free initial consultation.

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Answered on 12/14/09, 4:00 pm
Brent Rose The Orsini & Rose Law Firm

I agree with what Mr. Meyer said, and I'll add that you should speak with a bankruptcy attorney before you do anything regarding the New Jersey home. Obviously, it's not your homestead (you said you qualify for bankruptcy in Florida, which means you've lived here for some time), and therefore it's not completely protected under bankruptcy exemption law. And you can't just "zero out" the equity in an asset by placing debt on it before filing either a Chapter 7 or Chapter 13 bankruptcy.

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Answered on 12/14/09, 4:07 pm


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