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I am the president of a corporation (my spouse is the VP and

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there's only the two of...
I am the president of a corporation (my spouse is the VP and there's only the two of us). The corporation is a member of an LLC. The operating agreement for the LLC states that "Upon the occurrence of any of the following events, a Manager shall automatically and without the action or consent of any Member, cease to be a Manager of the Company: (b) files a voluntary petition in bankruptcy;"
I will be filing a voluntary petition; does this mean 1) I am no longer a Member, 2) that my corporation is no longer a Member, or 3) does it have any effect at all?
Submitted: 4 years ago.Category: Business Law
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10/27/2013
Business Lawyer: TJ, Esq., Attorney replied 4 years ago
TJ, Esq.
TJ, Esq., Attorney
Category: Business Law
Satisfied Customers: 12,569
Experience: JD, MBA
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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.

If I understand you correctly your corporation is a member of the LLC, and that you personally are not a member of the LLC. Also, you are going to file a personal bankruptcy, and your corporation is not going to file a bankruptcy.

If those are the facts, then I don't believe that the bankruptcy has an impact on the LLC. I would not say that you are no longer a member of the LLC, as you never were a member of the LLC. The corporation is a member of the LLC.

If you are personally a member of the LLC and a manager, then you would no longer be able to be a manager. It does not appear, however, that membership in the LLC would be revoked due to a bankruptcy. Being a member of an LLC means that you are in owner. The filing of bankruptcy cannot revoke ownership. The ownership is an asset.

Did I answer your questions? Please let me know if you need clarification. Thank you.
TJ, Esq.
TJ, Esq., Attorney
Category: Business Law
Satisfied Customers: 12,569
Experience: JD, MBA
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