We are upside down on some property in Alabama. Bought it for $400K. Have had on the market for $200K with no interest. We owe $200K to a bank and $200 to the original seller. We are trying to workout an extension with the bank, but we think the original seller is going to go for a judgment against us. We are moving to Arkansas, but I will be commuting and working in Texas. What laws apply regarding the judgement? Texas where I work, Arkansas, where we will be living or Alabama where the property is? If we homestead our property in Arkansas will it be exempt from a judgment? Will my wages be exempt from the judgment in Texas? Can they put a judgment on our bank accounts and any other real property we have? Would appreciate any information you have. Thank you.
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The judgment will be fore the state in which you acquired the debt. If you are talking about a homestead did in bankruptcy if you plan on keeping the land after you file you are still responsible for paying it. So I'm not sure if it will stop the judgment or not. But if you are upside down on it already why would you even want to keep it. I would include it in the bankruptcy and be done with it.