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Bankruptcy can discharge most judgements, but you actually have to be bankrupt. If you have $190 million and have a judgement against you of $200 million, you
by parsimo2010 7y ago
Bankruptcy can discharge most judgements, but you actually have to be bankrupt. If you have $190 million and have a judgement against you of $200 million, you don't get to file bankruptcy and discharge the whole thing because you can't pay the full amount. You'll end up paying most of the judgement before you are actually bankrupt and can discharge the remaining amount.
- toomuchtodo 7y agoCaveat: Some assets are protected during bankruptcy proceedings, 401ks federally, IRAs in most states, primary residence up to unlimited value in Florida. Not legal advice: if you’re going bankrupt with flush 401ks, IRAs, and a luxury residence, Florida is not a bad state to do it in.
- ranDOMscripts 7y agoWhich is why many pro athletes move their residency to Florida the day they sign their multi-million dollar contracts and buy the biggest mansions they can afford.