Personal Bankruptcy Personal Bankruptcy and LLC Assets

[jrhamblen]

My husband and I recently had to file a personal Chapter 11 bankruptcy due to being personal guarantors for some of the assets of two of our three companies that filed a liquidating Chapter 11. Our third company...an LLC that holds real estate is not involved in a bankruptcy, nor is that company a guarantor for any of the bankrupt company debt. My concern is that my husband and I are the only members of that LLC. Although our creditors and the trustee are aware of this company and the valuable asset it owns they have not come after it.

My question is can they take this asset? They have asked us to voluntarily turn it over to be sold with the assets of the other two companies. Is it or can it be protected in some way?

Thanks for your help.

 

[Michael Wechsler]

My husband and I recently had to file a personal Chapter 11 bankruptcy due to being personal guarantors for some of the assets of two of our three companies that filed a liquidating Chapter 11. Our third company...an LLC that holds real estate is not involved in a bankruptcy, nor is that company a guarantor for any of the bankrupt company debt. My concern is that my husband and I are the only members of that LLC. Although our creditors and the trustee are aware of this company and the valuable asset it owns they have not come after it.

My question is can they take this asset? They have asked us to voluntarily turn it over to be sold with the assets of the other two companies. Is it or can it be protected in some way?

Thanks for your help.

I am not a bankruptcy attorney but your shares of the LLC should be an asset that can be seized. People would never hold any property in their name and register it all to a corporation if it was that simple to shield property from creditors. You might want to speak to a specialist in this area, especially since the value of the asset is high and I would doubt that your creditors will leave this one alone. Good luck.