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What should I do to protect my bank bals and activity ? bankruptcy??

Boca Raton, FL |

My LLC has @ $20,000 bnk accts
My pers chkg acct. is funded by a $1600 soc sec auto dep/mo. ? (only income)
My Assets = joint Home mkt val $550K (was in forclosure.. now re-finan'd.
Mortg $100K (1st) + $300k(2nd)
My CC Debt $50K w/one (CitiBk) has just filed motion for Summ Fin Judg't. on 10/16/12 in 15th Circ. for $14,000......(wife has Sub S @75k/yr & separate cc debt)

Attorney Answers 5


  1. You cannot "protect" assets in bankruptcy court. They are either exempt or not. Your residence is exempt under the homestead exemption, social security income is exempt. Money in an LLC is not. You need to consult with an experienced bankruptcy attorney. You may lose some of your property.

    Lawrence J. Marraffino
    Bankruptcy Attorney

    This answer cannot be a substitute for legal advice which requires more information from the client than can be obtained in this forum. Therefore this answer CANNOT BE RELIED UPON AS LEGAL ADVICE FROM THIS ATTORNEY.


  2. Bankruptcy may be a viable option for you. I agree that you should consult with a bankruptcy attorney to discuss these issues. Consult as soon as possible because although assets may not be exempt now you may be able to effectively plan your case to maximize those assets prior to case filing.

    The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and experience. The information contained on this website presents general information about our firm and is not provided as legal advice and should not be used as legal advice. Before acting on any of the materials presented on this website, you should consult with an attorney regarding your own unique situation. Using this website does not create an attorney-client relationship between the user and Law Offices of Stephen Orchard and you.


  3. The short answer is that there is nothing you can do to protect your bank balances. The bankruptcy code allows for certain exemptions, and that's it. Your LLC will be considered a personal asset, so you'll probably lose the $20k you have there, unless the company has legitimate debt obligations (payroll, etc.). The SS and home equity are exempt. Your wife's income and assets will also have to be disclosed even if you file alone. You need to consult with a bankruptcy attorney ASAP.

    We can be reached at 507.334.0155 (Toll Free: 888.777.5009). Our web address is: www. corbin-law-office.com. Answers on Avvo are not to be considered a response to a specific legal issue in a specific jurisdiction - they are to be considered only general responses to hypothetical scenarios posed by the questioner. For specific legal advice, please consult with a licensed attorney in your jurisdiction. No information contained herein should be construed as a solicitation for business, an offer to perform legal services in any jurisdiction in which the attorneys of Corbin Law Office are not licensed, or the dissemination of legal advice. No creation of an attorney-client relationship should be assumed or implied. We are a debt relief agency. Corbin Law Office helps people file for bankruptcy relief under the bankruptcy code.


  4. Debt situations become much more complex when there is a business involved. You need to speak to a local attorney in order to form a plan of action that will protect the maximum amount of your assets.


  5. You have a home with $150,000 equity.
    You have an LLC whose assets include $20,000 cash, possibly more.
    You have over $1,000 in the bank.

    People lose things in Chapter 7. It's called liquidation for a reason.

    Seek counsel.

    This answer does not create an attorney-client relationship between you and I. I am not your attorney unless we both sign a written contract that describes our relationship and terms of the representation. Any information provided to you here is not a substitute for the advice you need to pursue any legal matter. I advise you to retain the services of a local attorney before taking any legal action in this matter.

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