How OJ Simpson may help keep Dick Fuld from stiffing his shareholders

Megan McArdle reports:

As you may or may not be aware, Florida is notorious among bankruptcy analysts because OJ Simpson bought a house there in the hopes of shielding his assets from the civil suit over the murder. Florida is one of the few states with what is known as an "unlimited homestead exemption". All states permit you to shield your primary residence from creditors in bankruptcy (though not from a mortgagor, as discussed in my previous post). As long as you keep making any payments on loans secured by the house, you can keep it. However, most states cap the value of the home you can thus shield. Not Florida. So OJ's strategy was, as far as we can tell:

1) Buy enormous house worth zillions of dollars and move into it
2) Wait until civil suit is over
3) Declare bankruptcy
4) Sell house for a zillion dollars; thumb nose at justice.

You'll want to read this one.