I want to file for personal bankruptcy. How will this affect my membership in an LLC?

December 29th, 2009 | by admin |
file bankruptcy
Cheryl asked:

I want to file a personal bankruptcy (chapter 13) due to personal debts. I also happen to be a managing member of an LLC. The LLC is doing ok, and is not involved in the bankruptcy. There is nothing in our LLC operating agreement as to what happens if a member files bankruptcy. Given that, can I still continue to be a member of the LLC after filing for bankruptcy? Also, how do I determine the value of the LLC as an asset in my bankruptcy filings?

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2 Responses to “I want to file for personal bankruptcy. How will this affect my membership in an LLC?”

  1. By dusty_titus on Dec 30, 2009

    I don’t have the answers to that question, you should check with your tax preparer.

  2. By Bobby on Jan 1, 2010

    I would recommend ammending your operating agreement to specifically deal with a member bankruptcy. Obviously do this before you file. What state is your LLC in?

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