Buying A House, All Cash, While Avoiding Creditors

Question:
Hi, I have $200,000.00 in cash, and they say I owe $70,000.00 in consumer debt. I would like to purchase a house in Florida, paying cash, no mortgage. I do not want to pay this so-called debt. My question is, other than placing a lien on my house, something I am not worried about since I plan to keep ownership of the house until I die, what legal measures can creditors take to try to extract cash from the house once it is purchased, and how easy would it be for creditors to find out that I have purchased this house? I do not plan to ever use any type of credit, or to purchase anything on credit, and my cash income per year will be less than $12,000.00.

Answer:
I think that if you buy the house in Florida and live there, and don't own a home somewhere else, your Florida home will be considered your homestead after a certain period of time. I think Florida allows an unlimited homestead exemption for people who live there and file bankruptcy. So, maybe later on you'll be able to declare bankruptcy and keep the house. But, there might be some catch about the $70,000 debt pre-dating the purchase of your homestead property in Florida. Of course, if I had $200,000 in the bank, I would ask for a legal opinion from a board certified bankruptcy attorney who resides and practices near where my future house would be before I bought the house. Another issue might be whether any new bankruptcy laws that are passed would change the ability to use the Florida exemptions.





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