Personal Bankruptcy PERSONAL BANKRUPTCY & LLC

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TMCH777

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I Have Started A Business In Oregon And Now Want To Form An Llc. If I Needed To File A Personal Bankruptcy, Would My Llc Be Protected From Debtors. I Am Undecided As To The Best Llc Type To Use...manager? Sole Propriator, Member? Can You Help Me.
I Am A Woman Owned Business In The Manufacturing Sector And Trying To File An Llc On My Own To Save Start-up Costs.
 
If you are filing for personal bankruptcy and you are trying to start an LLC and donate assets to the LLC don't expect them to be protected so quickly. This is a complex situation and it is best discussed with a professional. There are time periods from the date a bankruptcy is filed that monetary transfers could be subject to the claims of creditors.

There are different types of business organizations of which an LLC is one. Being a sole proprietor is the most risky. You are personally liable as are your assets. It is likely not the one to choose for creating a business. There are also partnerships and corporations, and some hybrid types such as LLCs, PCs, and more.

What is the purpose of your business and what is involved? While I can research more on this topic, it would likely help to have more facts before doing so.

TMCH777 said:
I Have Started A Business In Oregon And Now Want To Form An Llc. If I Needed To File A Personal Bankruptcy, Would My Llc Be Protected From Debtors. I Am Undecided As To The Best Llc Type To Use...manager? Sole Propriator, Member? Can You Help Me.
I Am A Woman Owned Business In The Manufacturing Sector And Trying To File An Llc On My Own To Save Start-up Costs.
 
Similar question

We did begin an LLC in 10/03 and my partner now wants to file persooal bankrupcy. We really haven't done anything with the business yet, however I just got some capital as a gift, and want to proceed. Will his situation impeed this? We are not related, nor married, however he is listed as my partner on the articles of incorporation and I want him to remain so. I haven't opened a business account yet with the money, but I would like to, and it is entirely my money. He will not be putting any cash into the business. Can I do this or is my only option to disolve the LLC, and open a new one with only my name and put him on later? I really don't want to spend that $ again! Please, if anyone knows.

Siobhan
NYC
 
Why not avoid the whole problem and just create your own LLC. There is no question that I would think it worth the money and also not having a connection with a partner who filed for bankruptcy.

Sio99 said:
We did begin an LLC in 10/03 and my partner now wants to file persooal bankrupcy. We really haven't done anything with the business yet, however I just got some capital as a gift, and want to proceed. Will his situation impeed this? We are not related, nor married, however he is listed as my partner on the articles of incorporation and I want him to remain so. I haven't opened a business account yet with the money, but I would like to, and it is entirely my money. He will not be putting any cash into the business. Can I do this or is my only option to disolve the LLC, and open a new one with only my name and put him on later? I really don't want to spend that $ again! Please, if anyone knows.

Siobhan
NYC
 
First, thanks to all those who help and best of luck to all those who need it. Stay strong!

I wonder, too, about Personal Bankruptcy (Chapter 7) and protecting my LLC. Here is the story...

We are an LLC with 2 managing partners. We both put in capital investment such as computer equipment (value 1G?) but work from home in from different states. I am a graphic designer and NEED this stuff. My partner also put in 2G from his retirement into the company 3 months ago (not under startup costs) which in turn became a loan to me to keep things afloat for me personally (in lieu of income since no profit). I have made enough money to cover rent but nothing more.

Q. Should I be declaring this loan from the partner to the company to me? Or is there some sort of funky think with "preknowledge" as he is a partner? (intent was that only of survival).
Q. Is my computer equipment not listed as assets in my personal bankruptcy filing because it is registered with the LLC?
Q. Will/can my business or my partner be affected in the future by my personal bankruptcy? (other than me not being a candidate for a cosigner for anything, of course)

Note: The LLC, though not pulling a profit, is not in debt.

Thanks for your time. I cannot afford legal advice so any advice, direction or research topics are greatly appreciated. Circumstances may have brought me down but I refuse to stay there!

-Karin
 
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