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Except in a certain few limited situations, it does not make sense for an LLC to file a chapter 7. This is because a LLC is ineligible for a chapter 7 discharge. See the Bankruptcy Code section is 727(a)(1): "The Court shall grant the debtor a discharge, unless-the debtor is not an individual."
But, to answer your question, yes the LLC (debtor) can file for chapter 7 without its members' (you and your wife) personal assets being exposed since the LLC is considered a separate legal entity. In the petition, you would list the LLC's assets and income, not yours.
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When and why does it make sense for an LLC to file chapter 7? Also, would the Chapter 7 filing stop creditors from calling the LLC debtor?
As a follow up to your comment and answer, when and why would it make sense for the LLC to file Chapter 7? Would it stop Creditors of the LLC from calliing the Debtor about paying the LLC debts?
If you are an officer and member of the LLC(debtor), then the creditors can call him about the LLC's debts. If you are just a member, then the creditors have no right to call you about the LLC's debts.
Situations where the LLC should file chapter 7 is if the LLC owes taxes because the government can go after the individual owners or directors of the business as a "responsible person". By liquidating the business in a chapter 7 instead of just letting creditors grab what they can, the owners can make sure that the IRS and state taxing authorities get paid first, thus reducing the personal obligation.
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