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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 12249
Experience:  JD, MBA
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when you file a personal bankruptcy: 1 - how do they treat

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when you file a personal bankruptcy:
1 - how do they treat an LLC that is filed as a schedule c on my tax return
2 - how far back do they review bank statements
Hello and thank you for the opportunity to assist you. My name is XXXXX XXXXX I will do my very best to answer your legal questions.

Q: how do they treat an LLC that is filed as a schedule c on my tax return
A: The LLC is considered personal property, and must be listed on Schedule B of your bankruptcy schedules. Generally, you would list it's value as being equal to it's value on a balance sheet. In fact, if the balance sheet indicates that it has no value, then you would put $0.00 on Schedule B.

Q: how far back do they review bank statements
A: In most cases, the bankruptcy trustee will only review bank statements for the month prior to filing the bankruptcy. But if the trustee finds anything suspicious for whatever reason, he can require statements going back several years. Last year I had a client who was required to provide bank statements dating back to 2009. The botXXXXX XXXXXne is that the trustee, as part of an investigation, has discretion to require bank statements for many years, but as a general rule trustees only care about what happened very recently (i.e., within last month).

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Customer: replied 3 years ago.


question 2 i'm fully satisfied with the answer thank you


 


question 1 - so does the llc become effected in any way? or have consequences directly to the llc?

Hello again.

Q: so does the llc become effected in any way? or have consequences directly to the llc?

A: If the LLC is valuable, and you cannot exempt it, then ownership of the LLC may be affected by your bankruptcy. The trustee would likely sell the LLC so that the proceeds can be used to repay your creditors.

TJ, Esq. and 3 other Bankruptcy Law Specialists are ready to help you