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Managing Member on LLC

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    Managing Member on LLC

    Planning to file BK Ch7 in a few months. My spouse has an LLC where he is the only worker. He is not filing BK. He owns the business 100%. Minimal assets, no debt. He is listed as the 'Registered Agent'. I am listed as a 'managing members/managers' (primarily so that I could have access to the bank account if needed).

    Will this raise issue with trustee. BTW The business has taken a turn for the worst and has not created income for us for 8 months. Trying now to turn it around.

    A member of an LLC has on ownership interest in the LLC. It sounds like you are a manager, but not a member, correct? If you have no ownership interest and no right under the operating agreement to the assets of the LLC, neither does the BK trustee, unless there is a basis to "pierce the corporate veil" (google it if you don't know what it means) or if you've been transferring your assets to the LLC. The trustee may ask about the LLC, but it shouldn't create any problems as long as you truely are nothing but a manager.

    ETA: When I say you being a manager shouldn't create a problem, that doesn't mean the Trustee might not want to know details about the LLC to determine your spouse's income from the LLC.
    LadyInTheRed is in the black!
    Filed Chap 13 April 2010. Discharged May 2015.
    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!


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