Florida Bankruptcy and my Single Member LLC
Many Chapter 7 debtors are concerned with whether or not their LLC interests will be effected by filing a personal bankruptcy. The answer is possibly, yes, if it is a single member LLC. A recent Florida court decision permits the Bankruptcy Trustee to consider single member LLC assets when the member files for individual bankruptcy.
The assets will most likely be considered property of the individual debtor's estate and could be subject to liquidation. However, in a Chapter 13, single member LLC property is not liquidated and is therefore safe from Trustee protection.
Please keep in mind that in a Chapter 13 bankruptcy, the unsecured creditors must receive at least what they would have received in a Chapter 7 bankruptcy. You should contact an experienced bankruptcy attorney at your earliest convenience if you have questions about your LLC and filing for bankruptcy.
If you have questions about Florida Divorces or Bankruptcy Law contact a Florida Attorney
Greg Gilbert
Keith Maynard
