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MIAMILAW1127, Lawyer
Category: Legal
Satisfied Customers: 755
Experience:  Founding Partner at Moises Law, P.A.
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I have been involved as a board member of a startup LLC 3

Customer Question

I have been involved as a board member of a startup LLC for about 3 years now that has been developing an employment based website. The LLC has run out of funding and is looking at filing for bankruptsy later this week. The attorney handling the filing is telling the CEO that as a board member I would be jointly responsible for about 22K in debt after we file and he trys to get that balance negotiated down. My question is if that is true and if I were to resign before the filing would that eliminate my potential liability?
Submitted: 1 year ago.
Category: Legal
Expert:  MIAMILAW1127 replied 1 year ago.

Hello. Thank you for contacting me. I am a consultant here and I am looking forward to assisting you with your question. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification. Please be patient as I will be typing my responses to you from scratch. Also, I can only answer/address the questions you ask specifically based on the information your provide. Please try to provide as much information as possible so I can best assist you.

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The short answer is no. Resigning at this time would not eliminate your liability. The only way you would have been able to have done that would have been to have resigned prior to the debt being incurred. You would not be responsible for any debt incurred after your resignation. However, as an officer you will be responsible for all corporate debts accumulated during the time you held your position.

I hope this helps. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Thank you.

Customer: replied 1 year ago.
Thanks. That is what I thought but wanted to confirm.
Expert:  MIAMILAW1127 replied 1 year ago.

No problem. Please don't forget to rate my response at your earliest convenience. Thank you.