QUESTION

How alter ego does applies to a Nevada LLC which filled for Chapter 7 Bankruptcy and owes $30K money. I think the person has major control on the LLC.

Asked on Mar 13th, 2011 on Business Law - Georgia
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How alter ego does applies to a Nevada LLC which filled for Chapter 7 Bankruptcy and owes $30K money. I think the person has major control on the LLC.
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1 ANSWER

If the debt is owned by the business, and not owned or personally guaranteed by the individual, and the company files for Chapter 7 bankruptcy the assets of the company will be sold to payoff creditors.  If there are no assets, or not enough to payoff all creditors the court will look to various rules regarding the type of debts and the priority of the creditors. Each case is different, and needs to be examined individually.   You should consult a creditor's rights attorney to determine your options.   This is not intended to be legal advice, and is general in its nature. No attorney-client relationship exists or is formed by this information. Furthermore, this does not represent the views or opinions of LexisNexis or its affiliated companies.  
Answered on Apr 04th, 2012 at 1:45 PM

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