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Category: Bankruptcy Law
Satisfied Customers: 17252
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Before a bankruptcy, if the person filing had a share of an

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Before a bankruptcy, if the person filing had a share of an LLC with other partners who bought some or all of him out out prior to bankruptcy, is there any exposure to the other partners?

What if the filing party still owns some of the LLC with other partners can the partners end up with a trustee who could sell his share to anyone although operating agreement does not allow a sale without other partners approval?
what is the person share?
Customer: replied 7 years ago.
In one case, 50%, in another 25%. As far as I know, the buyouts are not recorded anywhere but in the corporate register, not filed with the Corporate commission.
when the former shareholder files bankruptcy he will have to list the amount of money or assets received for his shares, the amount he received will be taken. If he still owns shares of the LLC, he will have to disclose their value, and the trustee could take the shares as part of the Estate to pay off his creditors, however the trustee would offer it up for sale first, and the partners could purchase it from him.
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