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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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how does an llc file bk

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how does an llc file bk

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on


 

WALLSTREETESQ :

An LLC is a corporation, and can file either a chapter 7 bankruptcy which would wipe out all of its debts, or a chapter 11 bankruptcy which is a reorganization of the corporation, and is filed if the LLC still want to operate by reorganization of its current leases, and debts to creditors.

WALLSTREETESQ :

Typically a chapter 7 for a LLC is not a great option, as creditors of an LLC that is going out of business can only go after the LLC assets and bank accounts not the personal shareholders, if the debts of the LLC are backed by a personal guarantee, then the individual would have to file bankruptcy.

Customer: replied 4 years ago.

what do you mean they can go after bank accounts can they go after personal accounts

The creditors can only go after the LLC bank accounts, unless you personally or any person personally signed or guaranteed the loans.

Typically, the owner of the LLC co signs for loans and credit, so if the LLC does not pay the creditors, the loan company can go after the person who co signed, and go after their assets.
Customer: replied 4 years ago.

if the llc files bk and goes out of business can you keep the llc for future people to sue so instead of suing the person they just sue the company

once the LLC files bankruptcy creditors can still sue the LLC if it is in existence, and if the debts were not discharged and if the owner was not personally liable for any for the debts.
Customer: replied 4 years ago.

if the llc files bk does that take care of past debts and future lawsuits

Yes, it will take care of all past debts of the LLC, not future debts gained after the bankruptcy was filed.
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