Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
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.