Question
How will my LLC be affected if I file for bankruptcy?
I am a 10% shareholder of a privately held LLC, is this exempt?LawQA.com Answer Library
Answered By: Eliza Ghanooni, Attorney at Law
The answer to your question depends on the value of the LLC. Does your LLC have assets that exceed its liabilities or vice versa? If the LLC has equity or sale value, the amount that is exempt will depend on what other assets you have.
Answer Applies to: California
Replied: 10/3/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: California
Replied: 10/3/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Janet A. Lawson Bankruptcy Attorney
It depends on what is worth and what your other assets are. The biggest mistake in pro per debtors make is filing when they have non-exempt assets. You should see a bankruptcy lawyer.
Answer Applies to: California
Replied: 10/3/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: California
Replied: 10/3/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Law Office of Michael Johnson
It is not exempt but it may not have much value. You should consult with an attorney.
Answer Applies to: Florida
Replied: 10/3/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: Florida
Replied: 10/3/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Ashman Law Office
You can't exempt LLC's unless you have a remaining wildcard and you need a lawyer.
Answer Applies to: Georgia
Replied: 10/3/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: Georgia
Replied: 10/3/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Attorney at Law
It depends on whether the LLC has any net value. This is determined by calculating the value of all assets owned by the LLC and then comparing this amount with the total debts owed by the LLC. If the amount owed is more than the value of the assets of the LLC, there is no net value and your 10% interest should not be affected by your bankruptcy. However, if the value of the assets is greater than the amount owed by the LLC, then there is a positive net value, and you own 10% of that net value. If your 10% value is greater than the amount that you can exempt under bankruptcy laws, then the bankruptcy trustee has the right to take over your interest in the LLC, force a liquidation (sale) of the LLC and use your 10% interest in the net sale proceeds (after paying you whatever amount you have exempted) to pay off some of your personal debts. As you can see, it all depends on the net value of the LLC.
Answer Applies to: Virginia
Replied: 10/3/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: Virginia
Replied: 10/3/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Heupel Law
The LLC is not exempt from the bankruptcy, but it does not mean that it would automatically be lost by filing bankruptcy. The LLC issue really depends on the what does the LLC do. For example, if the LLC provides a specialty service, then it's worthless without you running the LLC. Another issue is whether the LLC has any debt. When you are contemplating bankruptcy and you own a LLC, be sure to hire an attorney to handle your bankruptcy. Otherwise, you will risk losing the LLC.
Answer Applies to: Colorado
Replied: 10/3/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: Colorado
Replied: 10/3/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Law Office of Lynnmarie A. Johnson
It is not automatically exempt, it would depend on the value of your interest.
Answer Applies to: Michigan
Replied: 10/3/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: Michigan
Replied: 10/3/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Bankruptcy Law office of Bill Rubendall
If you file for bankruptcy all debts and assets are listed. If you have an ownership interest in a LLC it must be claimed as exempt property or else it will be sold by the trustee.
Answer Applies to: California
Replied: 10/3/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: California
Replied: 10/3/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Paul Stuber, Attorney at Law
In Colorado it is not exempt. The Trustee would be able to get the value of your stock to pay creditors.
Answer Applies to: Colorado
Replied: 10/3/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: Colorado
Replied: 10/3/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Law Offices of Joseph A. Mannis
Before you even talk about exemptions, I'd guess that your 10% interest is not worth much if anything. If it is, yeah, you might be able to exempt some or all of it but that depends on what other assets you have.
Answer Applies to: California
Replied: 10/3/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: California
Replied: 10/3/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Grasso Law Group
Your interest in the LLC will have to be declared in your petition along with the value of your share. Depending on your circumstances and its value, you can then look to exempt part of, or all of, the value.
Answer Applies to: California
Replied: 9/30/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: California
Replied: 9/30/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: The Law Office of Darren Aronow, PC
It is not exempt. The question is if there are assets in the LLC and if your shares have any value. It is important that you discuss the details of the LLC with an attorney to know if your shares are exempt.
Answer Applies to: New York
Replied: 9/30/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: New York
Replied: 9/30/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: The Salas Firm
No your ownership in the LLC is not typically exempt. Depending on the value of the LLC the trustee may force you to liquidate the asset for the benefit of your creditors.
Answer Applies to: Colorado
Replied: 9/30/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: Colorado
Replied: 9/30/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Uriarte & Wood, Attorneys at Law
It depends on what the value of your 10% is worth and if you have the ability to claim a wild card exemption.
Answer Applies to: California
Replied: 9/30/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: California
Replied: 9/30/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: The Schreiber Law Firm
Not unless you have and can use an exemption to cover the value of the LLC membership interest.
Answer Applies to: California
Replied: 9/30/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: California
Replied: 9/30/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
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