Considering bankrupcy

[Rover]

There is a lot of information about this on the internet, and I've pulled a couple of all-nighters reading up on it.

Do you have any links to Internet sites that discuss issues related to filing BK when one is an owner in a closely-held corporation?

BTW, were you a 100% owner? Do you know whether things change if the BK filer is not the sole owner of a closely-held corporation or LLC?

[Rover]

The judgement is against you, not the LLC so the Plaintiffs cannot come after your LLC
HTH

That is true for an LLC but not a corporation. Protection against personal judgments is one of the major benefits of an LLC over a corporation.

[scammer]

I am currently going through this right now. If you file personal bankruptcy and you are a corporate officer of a C, S or LLC -- you better believe they are going to look at your company.

They are going over mine right now with a fine tooth comb and have motioned to extend my case another 90 days so the US Trustee can "investigate" to see if he can gleen any assets from my company (which there are none and is actually now defunct as of 3/31/06). The value of our Corporation was only $5,000 at the time of filing, but they wanted all the Corporations bank statements, & P&L statements going back 5 years.

If you are a corporate officer, it will make your bankruptcy very complicated. Doesn't mean you can't do it, but if there are any assets for the LLC, yes, the Trustee will have his hand out.

The judgement is against you, not the LLC so the Plaintiffs cannot come after your LLC UNLESS they can prove that you co-mingle your personal and corporate money together. DON'T PAY ANY OF YOUR OWN BILLS FROM THE CORPORATE CHECKING ACCOUNT! Pay yourself a salary, then pay your bills. That way you are separate from the Corporation.

There used to be a time when a Corporation was it's own "entity" and still is, however, in more modern times, lawyers are "piercing the corporate veil". Two ways for them to do this is if you co-mingle personal/corporate money, pay any of your own personal bills out of the Corporation Checking Account and by proving that you refer to the business as "my business" or "I am the owner". (like i just did above LOL). They use that tactic to try to prove that you and your LLC are one in the same.

There is a lot of information about this on the internet, and I've pulled a couple of all-nighters reading up on it.

The Plaintiff can try to collect the judgement from you, or your corporation, even it they can't -- you'll still have to defend your corporation -- and could be costly.

I wish there were more of a yes/no clear type answer. Your best bet is to get a Lawyer, and I'm willing to bet that your Lawyer will tell you to file and not worry about the LLC until it's a problem.

PS -- depending on what the judgement was for, it may NOT be dischargable in BK -- best to look into that too.

HTH

Good post, I know alot about this stuff, when I have time I might write you private. I have some curious questions about this subject and how much the Trustee sniffs around. I made sure my Investment Company took on plenty of debts before filing. But I have an interest in discussing this with you.

ANYBODY KNOW WHAT HAPPENED TO THE BOYS AT "ART OF CREDIT" I HAVE BEEN TRYING TO ACCESS THE SITE FOR TWO MONTHS< NADA> THERE WERE SOME REALLY BUSINESS SAVY GUYS THERE RELATING TO BIZ STUFF.

Chow

[equity28]

I have 100% ownership over my LLC. They are suing me for something that happened in the year 2004(which someone working for me did), quite frankly my lawyer is is charging me to much and im tired of adding $5,000 to his retainer(im not poor but not rich in any regards), Since the company is cross country from me there is alot of paper work involved. I want to drop him and represent myself, tell this company I no longer can afford him and if they want to keep the $120,000 settlement on the table and not drop it so be it. They have no case but they have billions of dollars and I don't. I can't afford to go to trial and pay lawyer fees of $100,000. I have no choice but to file bankrupcy, One more question if I do would my credit companys still let me use my credit cards or would they take them away. I have never been late on a payment in my life to any to any creditor.