QUESTION
Can someone do an LLC to solve bakrupsy? How?
Asked on Jul 16th, 2011 on Bankruptcy - Missouri
More details to this question:
I wondered if a person who has had alatge compayny, watched all his emplotees loose their homes and he himself be in trouble, put everything he ownes into an LLC and keep it all? If this is so simple, why don't more people do this. I f I buy a home/land and put it into an LLC, how can I go wrong if my kids are the partners.
Second question, this still counts as an asset and almost every lawyer I soke with said for kids that may need disablity, an LLC is down right dangerous, especailly when the person wanting to help, will get the land when the child/children get sick? Can that person out of somekind of deep hate, leave their peice of land to the sick kids who will need government assitance just to keep them from getting it? How can one prevent this from happening.
1 ANSWER
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No, you cannot use an LLC to hide assets from the bankruptcy trustee, in either a chapter 7 bankruptcy or Chapter 13 bankruptcy. If you do attempt to transfer any property from yourself to the LLC, the bankruptcy trustee will void the transaction if it happened within two years of filing your chapter 7 bankruptcy petition. As chapter 13 bankruptcy does not include the liquidation of property, it really wouldn't matter where your assets are located if you file chapter 13 bankruptcy. An LLC is not something used for estate planning purposes, you'd better be suited by putting assets you want your children to have in a trust, such as a special needs trust. I'm not sure what the last question you are even asking, if you leave a piece of property to anyone and they can't afford it they simply don't have to accept it, so if government assistance is an issue the person who was willed of the piece of property simply does not need to take it and it will get probated with the rest of the estate.
I have responded to your inquiry according to the laws of Massachusetts, where I practice. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options.
Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.
Joseph F. Botelho, Esq.
BOTELHO & ASSOCIATES, LLCAttorneys At Law www.massachusettslawyeronline.com
126 Shove Street Unit 202 Fall River, MA 02724
Office: 888-269-0688Cell: 508-801-6747FAX: 877-475-8147
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Answered on Mar 19th, 2012 at 12:11 PM