Length of Time

[ShwMeMoney]

I am dealing with significant health issues and finally am sitting down to complete the BK packet. It feels overwhelming. I do not have 2 statements from every lender/ creditor easily. Is there a simpler way to do this. Suggestions are appreciated. How long will it take to complete a Ch. 7? Lastly, I am on disability from my state retirement while I wait for SS, if I get a tax refund, will that be taken to pay back debts?

[justbroke]

You don't necessarily need statements. Pulling all three (3) credit reports is usually the best way to find your creditors if you don't have the recent statements. Whether your refund would be "non-exempt" would be a question on the amount of the anticipated refund, the time that you file (before or after receiving the refund), and whether you have sufficient exemptions to cover the cash from the refund.

Are you filing Pro Se, or do you anticipate filing with an attorney?

[ShwMeMoney]

Thanks for your welcome messages and replies. I am filing with an attorney and the 48 page packet requires statements for each creditor. I like your suggestion though. I can always ask. She said I was judgement proof when I initially met with her, but we did not discuss tax returns. I did confirm with an accountant today I thankfully will receive a refund for 2024 EITC. I filed late for 2023 and also received a large tax credit. So with the 6 months request of bank statements, I am concerned as it is several thousand. I could easily say that money is set aside for housing, medical, etc. Unsure how this all works. I keep hoping maybe there is a way out of bankruptcy, if my creditors would settle for a lot less. lol
I have so many debts and yes could pay some, but then when would I draw the line and how could I if I only pay some back and not others.

Another question I have is regarding my LLC which has been on the back burner since my disability started. There has been no income from it. I am hopeful that someday, I may be able to pick it back up little by little when my health returns. IS this possibly or will I have to dissolve my business? I have some small assets in the business to like supplies, chairs, marketing tools.

[justbroke]

Usually, the Earned Income Tax Credit (EITC) has an exemption so long as you can show the refund, or that portion of the refund, came from the EITC.

As for the LLC, there may be some complexities but an LLC is it's own entity. It is not you. For a small LLC I don't think a Trustee would try to take over and liquidate the company. That's because the Trustee would need to wind-up the LLC which means selling off assets and paying all the creditors of the LLC before they can get at anything. So probably not something to worry about but you need to mention it to your attorney. There's probably something on your forms that ask if you owned or were an owner of a business.