Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
If your business records show that it is run as a separate entity, and you are not transferring assets back and forth (e.g., to possibly avoid payment of your personal debts), then your business will not be affected. But, if the bankruptcy trustee thinks that you are hiding assets in the business, then the trustee will ask the court to force the turnover of those assets to the bankruptcy estate. This could cause your case to be dismissed entirely -- which would leave you exposed to your creditors.
Hope this helps.
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There are no transfers of any kind of funds, no monies are ever intertwined--what kind of records would you be referring to? Bank records? Also, our business is new so there is no real "profit" to be had yet, so anyone looking in can see there is no hiding--we would then be fine right? And if everything went as planned, I could pay our monthly payment with business checks or would they have to be personal checks? Does it matter?
Seems pretty clean to me. But, you cannot make personal payments from your business accounts. You have to draw money as distributions in accordance with your operating agreement (which, if you don't have one, then you may want to consider drafting one, and then acting in accordance with its terms).
I'm not going to say that another attorney who advised you is incorrect. I will respectfully XXXXX XXXXX his/her opinion.
You are describing credit cards used for business but taken out in a personal name. That could be a problem, unless you're accounting for the purchases and reimbursing for them, just like any employee would be reimbursed for expenses.
Legally, at the time of filing the bankruptcy trustee owns all of the debtor's property, and that would include the LLC. But, the trustee doesn't want to run that business, and if the debtor is earning a living from it, then taking it over would destroy the entire Chapter 13 plan -- so that won't happen. And, as long as you make sure that the plan "vests the property of the estate back in the debtor" at the time of plan confirmation, then you will be able to continue to run your business, without interference.
I can't really tell you how to find the right attorney. You may want to consider finding a Board Certified Specialist in Bankruptcy Law.