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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I have a LLC that contains about 3 houses with a partner that

Customer Question

I have a LLC that contains about 3 houses with a partner that are owned free and clear by title but still owe about 50000 on them total. I have about 40000 in credit card debt on myself personally was concidering filing bankrucpy the llc has not posted a profit for the past three years shown losses what of my llc assests could be brought up in bankrupcy court? and what other things do i need to be aware of with the llc?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 6 years ago.
Hello,

So sorry to hear of your dilemna. I will strive to provide you with legal information to assist you.

I am a lawyer with 25 years experience. Although I am not your attorney, I hope that I can give you helpful legal information on this open and nonconfidential forum.

Unfortunately your interest in the LLC would be considered an asset of the bankruptcy court. The bankruptcy court may be able to force a liquidation of the LLC's assets for the benefit of your creditors.


Customer: replied 6 years ago.

If the titles of the propery were held in partners personal name would they be concidiered part of the llc? how long do they need to be in his name to not be concidered in bankrupcy

 

Expert:  Ellen replied 6 years ago.

The transfer would need to take place at least one year prior to filing bankruptcy in order to not fall within Bankruptcy Code §547 concerning a voidable preference.

Let me explain.


A transfer of the debtor’s assets to a creditor that results in a creditor receiving more than the creditor would have in a Chapter 7 bankruptcy, is typically considered a “preference".

Bankruptcy Code §547 provides for the avoidance of preferential transfers within 90 days before the bankruptcy filing date for third parties. Transfers to insiders (including a business partner) are subject to a longer avoidance reach back of one year.

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