LLC's get Third Degree by trustees???

[crazycat]

....Someone here, while talking about their experiences in regards to their 341 meeting today mentioned that while waiting, they overheard comments between a Trustee and a petitioner who had a LLC and was getting the "third degree"...What additional questions would One be asked if indeed you had an LLC? What would be the priority questions? anyone know? Thanks

[HHM]

Its not so much a 3rd degree in questions, it would be a 3rd degree in documentation. When a debtor files who owns a business, the antenna of the trustees are raised because the BK system, is after all, a self reporting system. Thus, when someone who was essentially self employed files BK, the trustee are more alert to potential issues.

[sunshine mary]

Well I got a lot of questions about a LLC I am in...My DH who is a self employed and not incorporated got hardly any ??'s at all and his business is his only source of income !! The LLC I am in owns property so I got questioned about the value of the property..... how much we paid for it and how much we owe on it...trustee wanted a copy of the operating agreement.. I thought she was just looking for any $$ that is there ??? The US trustee asked me if I thought one of the other partners would be interested in buying me out. That was about it for questions. This LLC I am in is not making $$ now and probably won't for a few years so I doubt they would want to buy my share which is really a liability at this point and not an asset. Don't know if that helped but it was my experience

[blaze]

I guess it depends on the situation with your LLC - are you talking business BK or personal? We filed a personal BK 7 - but we included a lot of debt form our LLC that we had guaranteed personally with our credit - There were very few questions asked of us about the business. The business is no longer operating (due to high debt!) but not dissolved. I guess they assumed as much money as we owed so many people there was no income there and they would be right. I was surpised more questions were not asked but I guess in our situation it was appaent that it was a miserably failed business - and it did not account for the majority of our debt - we did seek a BK attny that could handle any small business issues that came up though just in case and he did help us with some of the lawsuits realted to the company.