Business Law

Ask a business lLawyer. Get business law questions answered ASAP.

Ask a Lawyer,
Get an Answer ASAP!

The company is in ArizonaIf I am the original owner of an…

Customer Question
The company is in Arizona If...
The company is in Arizona
If I am the original owner of an LLC and I added a member to the LLC.
Then the company wasn't making enough money and I removed the other member from the LLC and everything they were attached to. This member is filing for Chapter 7 bankruptcy now for their personal finances.
Is the company's assets in any danger?
Submitted: 3 years ago.Category: Business Law
Show More
Show Less
Ask Your Own Business Law Question
Answered in 6 minutes by:
6/30/2015
Business Lawyer: TJ, Esq., Attorney replied 3 years ago
TJ, Esq.
TJ, Esq., Attorney
Category: Business Law
Satisfied Customers: 12,805
Experience: JD, MBA
Verified
Hello and thank you for the opportunity to assist you. My name is ***** ***** I will do my very best to answer your legal questions. What are the circumstances of you removing the member from the LLC? Did you buy the member out?
Ask Your Own Business Law Question
Customer reply replied 3 years ago
There was not enough work being generated over the last few months. It was a mutual separation since I am the original owner.
Business Lawyer: TJ, Esq., Attorney replied 3 years ago
Hi again.
Most likely your LLC is safe. However, it's not guaranteed. The bankruptcy debtor was a member, and apparently gave up his ownership interest in the LLC for nothing in return. Accordingly, it's possible that the bankruptcy trustee could argue that giving up the LLC for nothing was considered a fraudulent transfer (i.e., a transfer of an asset right before filing for bankruptcy in an effort to avoid the asset from being used to repay creditors). The main issue is whether the LLC has any value, and whether there was some sort of agreement before the LLC membership was given which stated that his interest in the LLC was limited. Ultimately, if the bankruptcy trustee tries to make an argument that the LLC should be used to repay some of the debtot's creditors, then you'll need to retain a local bankruptcy attorney to argue otherwise. But you're not there yet. As I mentioned first, most likely you're okay. But you'll have to wait to see how this unfolds.
Does that answer your question? Please let me know if you need clarification, as I am happy to continue helping you until you are satisfied.
Ask Your Own Business Law Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a business lawyerLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask TJ, Esq. Your Own Question
TJ, Esq.
TJ, Esq.
TJ, Esq., Attorney
Category: Business Law
Satisfied Customers: 12,805
12,805 Satisfied Customers
Experience: JD, MBA

TJ, Esq. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Infolawyer

Infolawyer

Attorney

2,032 satisfied customers

Experienced lawyer

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

1,611 satisfied customers

Run my own successful business/contract law practice.

MShore Law

MShore Law

Attorney

1,233 satisfied customers

Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements

RGMacEsq

RGMacEsq

Attorney

778 satisfied customers

Licensed Texas General Practice Attorney

Barrister

Barrister

Attorney

683 satisfied customers

17 years practicing attorney, JD, BA, MBA

Ely

Ely

Attorney

604 satisfied customers

Counselor at Law.

J.Hazelbaker

J.Hazelbaker

Attorney

393 satisfied customers

Experienced and trained in the area of business law.

< Previous | Next >

Related Business Law Questions
What is the best State to incorporate import business? I
what is the best State to incorporate for a import business? I want to import from China and sell products in California where I live. I want all of the benefits that come with having an entity. In th… read more
CalAttorney2
CalAttorney2
Attorney
Doctoral Degree
8,845 satisfied customers
What happens when you close your LLC due to insolvency. and
what happens when you close your LLC due to insolvency. and you cant make payroll, and there is no assets to sell off.… read more
Christopher B, Esq.
Christopher B, Esq.
Attorney
Juris Doctor
2,177 satisfied customers
I own commercial property under an LLC. I can no longer make
I own commercial property under an LLC. I can no longer make payments. It is not behind now but it will be shortly. There's a first mortgage and then a lien from the Condominium Association from past … read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
Pennsylvania - Our Cafe (LLC) was a defendant and received a
Pennsylvania - Our Cafe (LLC) was a defendant and received a judgement against us of $4200. The plaintive was suing for $6000. I am trying to decided If I should file an appeal (deadline is tomorrow).… read more
Roger
Roger
Litigation Attorney
Doctoral Degree
26,939 satisfied customers
I was added as a member to a business and have been a first
I was added as a member to a business and have been a first time owner of a business for 7 months now. I realized that the bank account that the original owner setup, does not have my name on it. I al… read more
Phillips Esq.
Phillips Esq.
Attorney
JD
20,465 satisfied customers
have a monetary judgement in missouri against a corporation.
have a monetary judgement in missouri against a corporation. What are my rights against the corporation as far as garnishment. Can I freeze their account receiveables, bank accounts, property? What is… read more
Law Pro
Law Pro
Doctoral Degree
19,000 satisfied customers
I am in a couple of business with two partners. One is a Florida
I am in a couple of business with two partners. One is a Florida Limited Partnership, the other a Florida LLC. One of the partners is going through a personal restructuring bankruptcy. His lawyers are… read more
Roger
Roger
Litigation Attorney
Doctoral Degree
26,939 satisfied customers
Hi,I am Mo-An LLC, owns car wash in California.And I
Hi, I am Mo-An LLC, owns car wash in California. And I am being sued for 1. Breach Of Promissory Note 2. Judicial Foreclosure 3. Specific performance appointment of receiver and injunctive relief 4.Fo… read more
Elizabeth Prentice
Elizabeth Prentice
170 satisfied customers
I have a company now that will never be able to pay the taxes
I have a company now that will never be able to pay the taxes and back debt it has. It is hard to get new work because of it. I would like to start another company and start fresh and either close, di… read more
MShore Law
MShore Law
Attorney
Doctoral Degree
1,233 satisfied customers
I am renting a space for my consignment store. I bought this
I am renting a space for my consignment store. I bought this store a year ago last March. In January I expanded to include furniture and fixtures. The landlord had verbally told me what my new lease w… read more
LawGuy
LawGuy
Juris Doctor
123 satisfied customers
If a member /partner leaves a LLC yet there are many venders
If a member /partner leaves a LLC yet there are many venders and inverters with contracts not full filled and member closes or damages company by shutting down merchant/ bank accounts taking office co… read more
Brent Blanchard
Brent Blanchard
Solo Practitioner
Doctoral Degree
1,964 satisfied customers
I was partners in a business (LLC) that formed a separate LLC
I was partners in a business (LLC) that formed a separate LLC for "lease to purchase" of a building. The original LLC was dissolved and I was not partners in the remaining business that was actually l… read more
Legalease
Legalease
Attorney At Law
Doctor of Law w/ highest honors
15,719 satisfied customers
My family owns a business which is a LLC that consist of myself,
My family owns a business which is a LLC that consist of myself, my wife, my mother in-law and my father in -law. The business has leased a color copy machine, (5 year contract) the lease is up in Dec… read more
lucy7368
lucy7368
Juris Doctor
763 satisfied customers
New Jersey; I filed Chapter 7 bankruptcy in 2009 and a discharge
New Jersey; I filed Chapter 7 bankruptcy in 2009 and a discharge was granted. I continued operating an LLC, which was obligated to pay leases for medical equipment. Revenues have decreased drastically… read more
David L
David L
Doctoral Degree
1,604 satisfied customers
I want to invest in a LLc company, the company buys and repairs
I want to invest in a LLc company, the company buys and repairs and sells homes. The LLC is in Ca and it already has 7 members. The questions I have are: What should I receive from the other members w… read more
Brent Blanchard
Brent Blanchard
Solo Practitioner
Doctoral Degree
1,964 satisfied customers
Im filing chapter 7 personal bankruptcy and was recently a
I'm filing chapter 7 personal bankruptcy and was recently a CEO of a small S corp. I need to know the restrictions for me if I were to start another business under my own SSN or possibly as an LLC. Ca… read more
Roger
Roger
Litigation Attorney
Doctoral Degree
26,939 satisfied customers
I am currently a small business owner in New Jersey with a
I am currently a small business owner in New Jersey with a LLC company (no partners as I am the only owner). I recently got an eviction notice to go to court within a few days due to nonpayment of ren… read more
KUMI95
KUMI95
Attorney
Doctoral Degree
17 satisfied customers
I previously asked for advice from Just Answer on Oct. 26,
I previously asked for advice from Just Answer on Oct. 26, 2009 regarding a small claims court petition that a creditor threatened to file against my company. The claimant is a creditor to which I owe… read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x