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Roger
Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31787
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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Can I put the LLC in bankruptcy if I am only a 50% member,

Customer Question

Can I put the LLC in bankruptcy if I am only a 50% member
JA: What state are you in? And has anything been officially filed?
Customer: Ca and no
JA: Has anything been filed in civil court? If so, what?
Customer: No
JA: Anything else you want the lawyer to know before I connect you?
Customer: No
Submitted: 30 days ago.
Category: Bankruptcy Law
Customer: replied 30 days ago.
My 50% partner will not pay his 50% of the Real Estate payments. He has not made 1 payment after escrow closed 9 months ago. I cant afford to keep making his payments and mine. Can I put the LLC in bankruptcy and stop the lean holders from foreclosing on me?
Customer: replied 30 days ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call.
Customer: replied 30 days ago.
Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  Roger replied 30 days ago.
Hi - my name is ***** ***** I'll be glad to assist.Who has the authority to do what depends on what the LLC operating agreement says.Generally, the manager has the authority to make that decision; if not, majority usually rules.Thus, you would need to determine what the agreement says and then proceed as it is written.
Expert:  Roger replied 30 days ago.
If the operating agreement is silent, the default is usually that a majority vote rules.It is possible for an involuntary bankruptcy to be filed, but that is done by creditors.....not members.
Customer: replied 30 days ago.
I am the president
Customer: replied 30 days ago.
what are my recourses? He got me into this real estate deal just to extort me. He had no intensions of ever paying anything.
Customer: replied 30 days ago.
Are you there?
Expert:  Roger replied 30 days ago.
Your recourse depends on what authority you have.
Expert:  Roger replied 30 days ago.
If you're unclear, it is probably best to have a local bankruptcy lawyer look at your corporate documents and advise you.
Customer: replied 30 days ago.
We are both 50% members. But it says if one member has to pay more than the other he is in violation of the agreement and I can get attorney to make him pay
Expert:  Roger replied 30 days ago.
Hopefully, your operating documents give you the right to file as president.
Expert:  Roger replied 30 days ago.
The provision for him to pay you back is a private claim between the individuals.....and isn't a cause of action for the Company.
Customer: replied 30 days ago.
what do you think I should do? I cant keep paying for both of us because I am almost out money.
Expert:  Roger replied 30 days ago.
You can privately sue him for the amount/s due.....and that may necessitate dissolving the company, which could lead to bankruptcy in order to avoid claims of creditors.
Customer: replied 30 days ago.
Ok, I am meeting with a Bankruptcy lawyer on Tuesday but I thought would try am get some peace before then.
Customer: replied 30 days ago.
I have $900,000 more into the property now and I don't know what to do.
Customer: replied 30 days ago.
I bought his ex partners out and the carried the note and they have extorting me for the last 9 months
Expert:  Roger replied 30 days ago.
You certainly have the right to sue for the additional capital investment as stated in the agreement. However, whether you can make the decision to file bankruptcy for the company depends on what the agreement says.
Expert:  Roger replied 30 days ago.
However, you may not need to file bankruptcy. Instead, you may only need to take action to dissolve the company in order to liquidate the assets and recover what you can.
Customer: replied 30 days ago.
What happens when the note holder start foreclosure? Which they have already told me they were going to do!
Expert:  Roger replied 30 days ago.
If the debt isn't paid up, the foreclosure will proceed.Even if you file a chapter 7 bankruptcy, the foreclosure can proceed. A chapter 11 would stop it if you can repay the debt under an approved plan.
Customer: replied 30 days ago.
I am trying to get them to let me split up the properties and go my own way with my properties
Expert:  Roger replied 30 days ago.
You can probably get something like that done theough the court.
Customer: replied 30 days ago.
I would like to stop the forclosure while I try and get something worked out in court. I think if I can get them thinking they are going to have to go to court they will be more willing to work with me. Do you have any ideas on how I should do that?
Expert:  Roger replied 30 days ago.
The only way to stop foreclosure -- other than bringing the loan current -- is to file chapter 11.
Customer: replied 30 days ago.
I cant keep paying because they wont work with me if I keep paying. They just keep telling me if I don't payments they are going to foreclose on me. Now I'm out of money and I need to protect the 2mil I have into it.
Expert:  Roger replied 30 days ago.
Understood. Your best bet is probably to file bankruptcy -- after you figure out how your plan allows it -- and then work of filing your individual suit against your partner. W
Customer: replied 30 days ago.
Would a good attorney be able to figure out how to file bankruptcy? The attorney that wrote the operating agreement said that is what I should do. He just wasn't sure how to do it because he is not a Bankruptcy attorney.
Expert:  Roger replied 30 days ago.
It's not so much about the attorney as it is that the agreement has to give you the authority to take that action.
Expert:  Roger replied 30 days ago.
Please let me know if you have any additional questions. Also, please take time to positively rate our conversation so I receive credit for assisting.