I am a member 25% of an llc that went to the tubes. i now have 3 civil suits. I have not yet claimed bk. my question. I want to refi my own house to pay student loan off and truck and also do some improvement on the house, not to mention have some money for a lawyer.. If i''m fighting the suits how long do i have to wait so it doesn't look like i'm doing something illegal? i'm going to keep my house etc. i' just want the business debts discharged?
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There's an example in the Technical BK Manual where someone did something similar to this.
Took a loan/refi'd his home. Made needed repairs to the house. Let go of the truck with the huge payment and little or no equity. Spent money fixing up a couple of old beaters of little value. Got those cars in good working order. Then he was all set to file BK.
This kind of planning takes a long time to execute and you'd have to document, document, document what you did with the money.
Taking money against your house to do these things a year or 2 before filing is one thing. Making a move like this mere months prior to filing is gonna be viewed totally different.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen... -
I would not refi my home unless, there is equity in excess of your states exemption.
You're Ok to refi for home improvements. There is likely language in your mortgage agreement stating you will keep the property in good repair. No problem with using the funds for bk legal and filing fees. Careful on the truck. You don't want to pay it off and then, discover the equity is above whatever your state exempts.
The student loans could well look like a preference payment.
I'd run all this by an attorney or 2 and see what they say.Comment
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complicated continued
I will be filing countersuits. The bank had interferred with a loan that was going to be signed through a usda program. They killed the deal on the day of the signing. The bank said that they would take care of us. Turned around and only loaned a 1/3 of what was needed, then cut us off at the knees. The relender had a board member from the same bank outfit. go figure this one. this might be a drawn out process. but i'm already financially on the edge. the equity would net me a additional 500 in my pocket each month, not to mention add value to the house.Comment
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