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Roger
Roger, Attorney
Category: Business Law
Satisfied Customers: 31026
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I am an officer in an LLC that has gone under. To dissolve

Customer Question

I am an officer in an LLC that has gone under. To dissolve the LLC I was told I have to settle all debts. There is a 70,000 credit line that I can no longer keep up on....the business is under water. What do I do?
Submitted: 6 years ago.
Category: Business Law
Expert:  Roger replied 6 years ago.
Do you have a personal guarantee on the line of credit?
Customer: replied 6 years ago.
yes I do
Expert:  Roger replied 6 years ago.

Ok. The articles of dissolution must contain a provision that outlines your arrangements to pay off or settle all debts. Because you've got a personal guarantee on the debt, you can provide that the debt can be settled through the personal guarantee if the LLC has no assets or money to pay; this will allow the LLC to proceed with dissolution.

 

Because the creditor can sue a member on the personal guarantee the creditor can continue to collect on its debt.

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