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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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two people signed a note with me for $50,000. One files chapter

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two people signed a note with me for $50,000. One files chapter 7 bankruptcy under his name but note I have from him is for his LLC. What are my riights

cfortunato :

Hi - my name is XXXXX XXXXX I'm a Bankruptcy attorney here to assist you.

cfortunato :

A personal Bankruptcy cannot discharge debts owned by an LLC.

cfortunato :

This is so, even if the person filing Bankruptcy is the sole owner of the LLC.

cfortunato :

Therefore, the co-signor LLC will still be liable for the note, even if the person who owns that LLC files a Bankruptcy.

Customer:

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

cfortunato :

Did he personally sign the note in addition to his LLC?

Customer:

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

cfortunato :

His personal liability for the note gets discharged in his personal Bankruptcy.

cfortunato :

But the LLC's liability for the note cannot be discharged.

Customer:

Thank you

cfortunato :

You're welcome!

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