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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2815
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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If a person claims bankruptcy on an LLC does it affect their

Resolved Question:

If a person claims bankruptcy on an LLC does it affect their personal line of credit and bills also? Can you claim bankruptcy and keep your house?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 7 years ago.
to answer your questions:
1. if the LLC files, it shouldn't affect anything personally, unless you had signed personal guarantees on the debts, then you would still be personally responsible for that debt.

2. If you have no equity in the house and car, you can choose to reaffirm a house or car in a chapter 7 bankruptcy if you want to keep them. you would then keep the debt as is, and would need to pay it. If there is unexempt equity, then you would look at chapter 13 to consolidate debt to protect the equity in that asset.
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