Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
You can file a personal Chapter 7 - which costs far less money. The LLC will become property of the estate, and the automatic stay applies to "any act to obtain possession of property of the estate...". Bankruptcy Stat. 362(a)(3).
Consider calling the New Jersey Bar Association for a recommendation for a Bankruptcy attorney. The number is 732(NNN) NNN-NNNN/strong>. Don't be afraid to "shop around", because there is a large variation in what Bankruptcy attorneys charge. I have seen them charge $800 - $3000 for the same service, and a higher price does not mean a better attorney.
What are you re-financing? And are you re-financing for more than the current mortgage ("cash-out")?
The cash that you take out of the re-finance can be taken by the Bankruptcy trustee, even if the money is already spent. Additionally, if you file a Chapter 7, and you have assets, you may not be able to dismiss the case.
What happens with the LLC will not affect personal assets, unless personal guarantees were made.
Yes, I said the cash taken out can be taken by the Bankruptcy trustee - if it is more than a certain amount (about $10,000).
The lenders will ask what the money is going to be used for. If you house has enough value, it won't much matter what you are going to use the money for.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).