How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask cfortunato Your Own Question
cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
14232603
Type Your Bankruptcy Law Question Here...
cfortunato is online now
A new question is answered every 9 seconds

I am currently a small business owner in New Jersey with a

Resolved Question:

I am currently a small business owner in New Jersey with a LLC company (no partners as I am the only owner). I recently got an eviction notice to go to court within a few days due to nonpayment of rent. I have been constantly been trying to get loans but has not worked and I have spoken to the landlord but we cant come up with an agreement as she wants to sum to be all paid up front. I have recently got a refinance mortgage approved but it still going to take a month or so until closing and the landlord wont wait. Some lawyers on here have suggested filing chapter 11 bankruptcy to stop the eviction but it is just too much according to the lawyers I have called locally ($10,000 and up). I wanted to know if there were any other option to stop this eviction??? As I know I will be able to come up with money in a longer time frame
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.

Hi Customer,

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.



Edited by cfortunato on 9/7/2010 at 9:55 PM EST
Customer: replied 6 years ago.
ok but my main goal is to get out of eviction temporarily as I will have the money in a few months so is chapter 7 still the right thing to do? can I withdraw from it?
Expert:  cfortunato replied 6 years ago.

What are you re-financing? And are you re-financing for more than the current mortgage ("cash-out")?

Customer: replied 6 years ago.
refinancing my personal house and there is a cash out which would get me out of this business debt
Expert:  cfortunato replied 6 years ago.

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.



Edited by cfortunato on 9/8/2010 at 4:12 AM EST
Customer: replied 6 years ago.
I see it would be different because its personal... and because the company is under a LLC it wouldnt affect my personal assets
Expert:  cfortunato replied 6 years ago.

What happens with the LLC will not affect personal assets, unless personal guarantees were made.

Customer: replied 6 years ago.
therefore the cash out I take out from my house would not be taken by the bankruptcy courts right? Nor will the lenders find out about that and turn me down since thats business
Expert:  cfortunato replied 6 years ago.

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.

 

cfortunato and other Bankruptcy Law Specialists are ready to help you
Customer: replied 6 years ago.
hmmmm then that really doesn't help me if all the money is taken by the bankruptcy court... My whole goal here is to just try to stop the eviction and wait til the loan comes out to pay the debt off or pay a portion and set up a payment schedule. Is there really any other ideas you could think of in this type of scenario I am in to stop eviction
Expert:  cfortunato replied 6 years ago.
I didn't know in the beginning you were going to re-finance with a cash out. Would not have mentioned a Chapter 7 if I had known. In any event I am opting out of the question for someone else to help you further.
Customer: replied 6 years ago.
thank you very much