I'm not legally trained, but it sounds like boilerplate... "to pursue any remedy available..." may be only to repossess. Seems there is not enough info here to determine.
The way I read your question, it is a question regarding bankruptcy rather than having anything to do with a mortgage. In a bankruptcy, all assets and liabilities are placed into the bankruptcy. The bankruptcy trustee settles the debts with the proceeds from any assets. Trying to keep an asset out of the bankruptcy, such as cash for instance, would be a fraudulent. Now if she were simply getting foreclosed on regarding the property versus filing bankruptcy, it is a completely different matter. Foreclosure is a matter of state law, and therefore can only be determined after knowing the state, and the foreclosure laws in the state. Her cash in this case would not necessarily be a factor in the foreclosure. In California for instance, residential foreclosures are typically satisfied by taking the property, and governed by the "one action rule", meaning they can't come after your other assets after they have taken the house. Other states a lender can take the house, sell it, and then sue for a "deficiency judgment" to be satisfied by other assets. Here, her cash would be a factor perhaps, and trying to move it somewhere might be a fraudulent conveyance. Either way though, bankruptcy is an entirely different matter. Bankruptcy is federal law. And there is a look back period where the court could look back to see what has happened with assets that have "suddenly disappeared". Best advice for your friend is to spring for some good legal advice. OldTrader
She went and got a bankruptcy attorney (and any attorney will take as much money from a client as they can get regardless of the interest of the client) because of her concern that the commercial building, which will be foreclosed on, is in her name personally. Sounds like maybe she needs a "foreclosure attorney" of which there are many popping up. If a Florida attorney will tell her they can only take the commercial property and nothing more, then maybe staying out of bankruptcy court is her answer. I don't know what she already spent on this bankruptcy attorney but spending a little more on attorney who can keep her out of bankruptcy (and just let the foreclosure go forward) may very well be in her best interest. The information provided in response to the question is invaluable and very much appreciated. A sincere thanks to all who contributed. Happy turkey day!
It is all very easy. Turn the 250k into cash and spend it. Buying a gold brick could do the job. If it 'disappeared' one day... how unfortunate eh?
That's called "fraudulent conveyance". Amply covered in bankruptcy law. It's not an original idea to try to eliminate some assets from a bankruptcy. OldTrader
She's going to get an attorney to advise on whether the mortage holder on the commercial property can go after her personal assets on a foreclosure. Thanks again to everyone for their input.