QUESTION

Do I put a LLC on a personal bankrupcy?

Asked on Jan 24th, 2013 on Bankruptcy - Missouri
More details to this question:
Due to personal medical bills, student loans, and other creditors, we are contemplating bankrupcy, if we can get the $600 together to even get a lawyer. We are on an LLC. What do we do about it? It has only recieved $200 in profits in 5 years.
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1 ANSWER

Bankruptcy Attorney serving Burbank, CA
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I'm not sure I understand your question.  Are you asking whether the LLC can file a bankruptcy, or are you asking what happens to your LLC if you file a personal bankruptcy, or are you asking whether the debts the LLC owes are affected by filing your personal bankruptcy? Your interest in the LLC is an asset that you own and, as such, it must be valued and listed in your personal bankruptcy case.  Depending on what it is worth and what exemptions you have available under applicable law to protect that value, you may be able to retain your interest in the LLC. Your personal bankruptcy will get rid of any dischargeable debts you have, including personal guarantees or other debts you PERSONALLY owe from the LLC.  However, it will not discharge the LLC's obligation on those debts. Mark Markus has been practicing exclusively bankruptcy law in California since 1991.  He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization,  AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.  
Answered on Jan 25th, 2013 at 12:29 AM

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