The morality of walking away from debt

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<p>I'm now wondering about my previous analysis? Could this be what is known in Florida as a fraudulent transfer? The law's on the books, but very, very hard to prove.</p>

<p>Of course, if there wasn't any fraud, as there wasn't in my client's case, then there's no fraudulent transfer. Strangely enough, I have a feeling, just a feeling, mind you that putting the money in a relative's name, rather than one's own, might be regarded as mens rea (guilty mind), so if you can prove that's where the money came from, you might have a slightly greater ability to prove your case.</p>

<p>I'm sure there is an equivalent statute in every state. Before it was amended, Fla's was taken directly from a statute of Elizabeth the First. Not a new ploy!!</p>
 
Given the origin, I'll bet this is one of these cases where a similar law is on the books of 49 states. Louisiana is based on the Napoleonic Code, not English Common Law, and is usually the odd man out.
 
<p>Facing Default, Some Walk Out on New Homes </p>

<p><a href="http://www.nytimes.com/2008/02/29/us/29walks.html?pagewanted=1&_r=1">http://www.nytimes.com/2008/02/29/us/29walks.html?pagewanted=1&_r=1</a></p>

<p> </p>

<p>Borrowers Abandon Mortgages as Prices Drop</p>

<p><a href="http://online.wsj.com/article/SB120424677934501611.html">http://online.wsj.com/article/SB120424677934501611.html</a></p>

<p class="times">Some in the industry want to toughen the consequences for borrowers who walk away. Executives at <a class="times rolloverQuote" onmouseover="window.status=(' Quotes & Research for FNM');return true" onmouseout="window.status=('');return true" href="http://online.wsj.com/quotes/main.html?type=djn&symbol=FNM">Fannie Mae</a> say they are working to create harsher penalties for people who walk away from mortgages, and they plan to pursue some borrowers in court. They also want to extend the amount of time between when borrowers default and when they become eligible again for a Fannie Mae-backed loan.</p>

<p class="times">"Of course, we will make exceptions for extenuating circumstances, like divorce or death," says Mike Quinn, a Fannie Mae executive. "But who we are trying to get are the people who can afford to make payments but have decided not to."</p>
 
<i>"Some in the industry want to toughen the consequences for borrowers who walk away."</i><p>

What a crack up! Our federal government just made it <b>EASIER</b> to walk away by doing away with the tax on forgiven mortgage debt!
 
>"Some in the industry want to toughen the consequences for borrowers who walk away."

<em></em>

<p>>What a crack up! Our federal government just made it <strong>EASIER</strong> to walk away by doing away with the tax on forgiven mortgage debt!</p>




<p>Government != industry.</p>
 
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