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johngibson15219, Attorney
Category: Bankruptcy Law
Satisfied Customers: 159
Experience:  Admitted to Pennsylvania Bar 1980. I'm familiar with the new law.
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I have an LLC which has $56,000 in unsecured credit card debt.

Customer Question

I have an LLC which has $56,000 in unsecured credit card debt. My business has been failing for the past few years and now is at a point I can only make payments by borrowing more. I've considered Debt. Settlement but that seems risky. Chapter 7 seems more likely. If I bankrupt I will lose all my business equipment, computers mostly. Can I transfer some of my assets elsewhere before filing or is this illegal?
Submitted: 8 years ago.
Category: Bankruptcy Law
Customer: replied 8 years ago.

Albertville, Alabama

Already Tried:
I have been checking into Debt Settlement plans. This seems risky. The terms on the unsecured debt cards say I, as well as the LLC, are responsible for the debt. So I was thinking it would be better to have the court protection Bankruptcy offers.
Expert:  johngibson15219 replied 8 years ago.
You would file a personal bankruptcy not a corporate bankruptcy. It's difficult to give you an idea of which way to go without knowing more. If you do not own your own home or other assets then a Chapter 7 may allow you to keep your business equipment as falling within your allowable exemptions. If you do own your own home and have substantial assets then you probably want to consider filing a Chapter 13 bankruptcy where you will pay back as much of the unsecured debt as you are able to pay back. For example, if you only have $100.00 left a month after your other bills such as mortgage, gas, clothes, etc. are paid, then you only pay back that $100.00 a month on your unsecured debt such as credit cards, bank loans, etc.
Customer: replied 8 years ago.
I do own a home. The LLC offers me no protection in this?