If I go Ch13, can my LLC earn extra $?

[Tom_Mi]

I have an LLC that is really just sitting idle. It's shares are owned by my Roth IRA. It only holds about 3,000 of exempt money.

I've read that trustees can raid such LLC bank accounts, but I've only read about it in the context of filing and initial balances/exmeptions.


What if for example I build birdhouses in my basement and my LLC sells them? I wouldn't touch any revenue during the plan, I'd just let it accumulate in the LLC bank account.

[StartingOver08]

The LLC is your asset (if you own the LLC by youself). If you have funds in the LLC account as of the date of filing, those funds (100%) belong to the trustee.

It is my understanding that if you earn money after the filing date through the LLC that those funds belong to you. YMMV. You will definately want to speak to your attorney about this.

Does the LLC have any debt?

[HHM]

Money earned by the LLC counts for your disposible income (after deducting business expenses).

So technically, if you start making money with this LLC, the trustee can amend your chapter 13 plan and up your monthly payment.

[Tom_Mi]

Thanks again guys for all your excellent thoughts.

This morning I decided to just say nuts to the whole thing and go CH7. I'm not spending 5years as a hostage to a trustee for an apartment investment that won't return better than 8%.