I am NOT an attorney, and have no idea what kind of attorney you would need to speak with, to get an answer to your question. I am wondering, though, have you considered putting your inheritance into a trust? I've heard that is a good way to protect yourself from "creditors and predators".I'm back on this forum, I've been sifting through hundreds of messages, trying to come to a decision. Here's our current situation:
We let our house foreclose; Wells Fargo sold it on Oct. 2013 for $250K (we'd bought it in 2007 for $540, 1st mortgage was $440K, purchase money HELOC, also with WF was $40K). We got a letter from WF about the HELOC/SOJL in Sept 2014 asking for 50% of $44K, we ignored it.
The mortgages were entirely in my spouse's name, they don't show up on my credit report. We were planning to continue staying silent except I got an inheritance check, which I haven't deposited. We've seen 2 lawyers, one says to declare bankruptcy to wipe the slate clean. We have no other debt to speak of, but if we do, the inheritance and our cars are at risk. The other says to settle, as the tax consequences are less than the loss of the inheritance/cars. Our total income is 65K, so a low tax bracket.
But I see that, as of last summer, the advice on this forum was to never settle with a SOJL, especially since in WA State it should be non-recourse. Right now, our file is probably at the bottom of Well's Fargo's pile. If we try to settle, it may wake them up into taking more action.
Do I deposit the check into my business account (non-comingled) and trust that WF is so out to lunch they won't notice?
Do we call them up and offer $4,000 or some equally low ball offer?
I can't sit on this check for long, the estate is being settled soon.
Any feedback, suggestions, similar stories, are appreciated!
It is my understanding that inheritances are considered separate property (or money), and unless co-mingled in a joint account with your spouse (or adding a spouse's name to it), it remains separate property. Maybe a trust would be a way to protect your inheritance from those creditors. An attorney could help you figure out what kind of trust to put it into.
Might be worth looking into. Good luck!