As Spouse of Debtor, Can I Avoid Loss of Personal Property Via Writ of Execution

[devilsafterme]

My question involves collection proceedings in the State of: OK.

My wife was the sole shareholder and officer of an S corp retail business. The business failed and a liquidation company was hired to dispose of assets of the corporation. The liquidation company stole a large quantity of merchandise and after much back and forth canceled the sale.

She made a police report which came to naught ("civil matter, closed"). The liquidation co. filed suit for breach of contract against both corp. and my wife as individual. Meanwhile, most of remaining assets of business had been disposed of at auction ~ at a substantial loss. There was insufficient money to obtain legal representation and she could not represent the corp, thus a judgment was issued against the corp. and the suit against her is still pending.

Meanwhile, the creditor has attempted to collect the judgment by writ of execution. Efforts to set aside our personal belongings as exempt from this writ have failed. An asset hearing was set up, but at that time, my wife filed bankruptcy in behalf of corp.

Legal representation has been obtained, but too late. The bankruptcy is in process, and we have lost many of our personal things that were stored on the property of the business (rented property). Should anyone try, it is possible that the corporate veil could be pierced, as the increasing stress of running a failing business over the last year or so, along with some health issues, made things messier than in previous years. She is not a great record keeper.

A settlement was attempted but failed. The creditor has vowed to pierce the corporate veil. If that actually happens, then how does the court or the sheriff or whomever determine what belongs to my wife and what belongs to me? We have valuable furnishings in our home, and this is known to the creditor.

We also have a property in a foreign country that is free of encumbrance. The property is actually owned by a bank, and my wife is listed as the primary beneficiary of that fideicomiso trust. The trust is not protective because the property can be sold by us.

Lawyer has suggested personal bankruptcy, but neither one of us can bear the thought of losing the foreign property, which was paid for with home equity and retirement funds here.

If we were simply to let them continue to try to enforce the writ, how could we protect our property here? What are my rights as one who is uninvolved in this matter?

Any assistance is greatly appreciated. DevilsAfterMe

[Mr. Knowitall]

If that actually happens, then how does the court or the sheriff or whomever determine what belongs to my wife and what belongs to me? We have valuable furnishings in our home, and this is known to the creditor.

They either attempt to perform discovery beforehand and perhaps seek a court order based upon what they learn, or they get an order to take your stuff and leave it to you to argue to the court that you're entitled to its return.

If we were simply to let them continue to try to enforce the writ, how could we protect our property here?

We know nothing about the property you are trying to protect or whether you might succeed. That lawyer you hired to represent and advise you? Ask him.