Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Hi - my name is XXXXX XXXXX I'm a Bankruptcy attorney here to assist you.
A personal Bankruptcy cannot discharge debts owned by an LLC.
This is so, even if the person filing Bankruptcy is the sole owner of the LLC.
Therefore, the co-signor LLC will still be liable for the note, even if the person who owns that LLC files a Bankruptcy.
Why would the court let him list all this debt then. Wouldn't he have to show a promisary note and if it is listed under an LLC would he not have to file under the LLC to relieve him of the debt
Did he personally sign the note in addition to his LLC?
The note states that it is a loan to Casey Boyd LLC . On the note it also says that this is excluded from bankruptcy. He and a business partner both personally signed it
His personal liability for the note gets discharged in his personal Bankruptcy.
But the LLC's liability for the note cannot be discharged.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).