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If debtor dissolves an entity during his personal BK do
No, the debt against the LLC is not secured by the LLC assets; they are
separate.
Holly Roark
Certified Bankruptcy Specialist*
holly@roarklawoffices.com **primary email address**
www.roarklawoffices.com
Central District of California
Consumer Bankruptcy Attorney
1875 Century Park East, Suite 600
Los Angeles, CA 90067
T (310) 553-2600
F (310) 553-2601
*By State Bar of California Board of Legal Specialization
**For a quicker response, email me at holly@roarklawoffices.com.
I only use gmail for my listservs, and am likely to miss private emails
directed to my gmail account.**
On Thu, Mar 6, 2014 at 3:40 PM, Clifford Bordeaux wrote:
>
>
> Was the LLC debt secured by the LLC real estate? If so, then I wouldn't
> think the transfer would matter much, since the estate would now have real
> estate worth $15K, instead of having an LLC worth $15K. If not, then I
> think the debtor has a problem. The property is now "property of the
> estate" pursuant to 541(a)(7) and the debtor would not want to attempt to
> transfer the property back to the LLC, as this could give rise to a Section
> 549 avoidance action.
>
> Clifford Bordeaux
> Bordeaux Law, P.C.
> 3731 Wilshire Boulevard, Suite 600
> Los Angeles, CA 90010
> T: 323-762-5529
> T: 626-405-2345
> F: 626-628-1820
> E: cliff@bordeauxlaw.com
>
>
>
> On Thu, Mar 6, 2014 at 1:10 PM, Peter M. Lively petermlively2000@yahoo.com> wrote:
>
>>
>>
>> Dissolution of the LLC effectuates a transfer of the real property from
>> the LLC to the debtor which may have tax consequences.
>>
>>
>> Peter M. Lively, J.D., M.B.A.
>> Law Office of Peter M. Lively * Personal Financial Law Center I
>> 11268 Washington Boulevard, Suite 203, Culver City, California 90230-4647
>> Telephone: (310) 391-2400 * Toll Free: (800) 307-3328 * Fax: (310)
>> 391-2462
>>
>>
>> On Thursday, March 6, 2014 6:27 AM, Stella Havkin > havkinlaw@earthlink.net> wrote:
>>
>> In most states, the LLC can be reinstated with a form.
>>
>> Sent from my Stella Havkin's iPad
>>
>> On Mar 5, 2014, at 10:00 PM, Holly Roark wrote:
>>
>>
>> Debtor filed a personal BK. He had a single member LLC that owns real
>> property which is not worth much (approx. $30K). The LLC has debts against
>> it which reduce the equity in the LLC to about $15K which we can exempt.
>> BUT, the Debtor filed a dissolution of the LLC postfiling and pre341(a).
>> So, I am not sure whether the debts of the LLC still offset the equity in
>> the property, or whether it's as if he was just a dba. The property is in
>> the name of the LLC.
>>
>> [Ultimately, it may not matter because the property is a big liability,
>> is in a high crime area out of state, and probably unsellable, but just in
>> case, I need to understand the effect of him dissolving the LLC after
>> filing.] I understand that the debtor may not have had the authority to
>> dissolve the LLC since it's property of the estate, but it's done already.
>>
>>
>>
>> Holly Roark
>> Certified Bankruptcy Specialist*
>> holly@roarklawoffices.com **primary email address**
>> http://www.roarklawoffices.com/
>> Central District of California
>> Consumer Bankruptcy Attorney
>> 1875 Century Park East, Suite 600
>> Los Angeles, CA 90067
>> T (310) 553-2600
>> F (310) 553-2601
>> *By State Bar of California Board of Legal Specialization
>>
>> **For a quicker response, email me at holly@roarklawoffices.com.
>> I only use gmail for my listservs, and am likely to miss private emails
>> directed to my gmail account.**
>>
>>
>>
>>
>>
>
>
No, the debt against the LLC is not secured by the LLC assets; they are separate.Holly RoarkCertified Bankruptcy Specialist*
holly@roarklawoffices.com **primary email address**
www.roarklawoffices.com
Central District of California
Consumer Bankruptcy Attorney
1875 Century Park East, Suite 600
Los Angeles, CA 90067
T (310) 553-2600
F (310) 553-2601
*By State Bar of California Board of Legal
Specialization
The post was migrated from Yahoo.
Was the LLC debt secured by the LLC real estate? If so, then I wouldn't
think the transfer would matter much, since the estate would now have real
estate worth $15K, instead of having an LLC worth $15K. If not, then I
think the debtor has a problem. The property is now "property of the
estate" pursuant to 541(a)(7) and the debtor would not want to attempt to
transfer the property back to the LLC, as this could give rise to a Section
549 avoidance action.
Clifford Bordeaux
Bordeaux Law, P.C.
3731 Wilshire Boulevard, Suite 600
Los Angeles, CA 90010
T: 323-762-5529
T: 626-405-2345
F: 626-628-1820
E: cliff@bordeauxlaw.com
On Thu, Mar 6, 2014 at 1:10 PM, Peter M. Lively
wrote:
>
>
> Dissolution of the LLC effectuates a transfer of the real property from
> the LLC to the debtor which may have tax consequences.
>
>
> Peter M. Lively, J.D., M.B.A.
> Law Office of Peter M. Lively * Personal Financial Law Center I
> 11268 Washington Boulevard, Suite 203, Culver City, California 90230-4647
> Telephone: (310) 391-2400 * Toll Free: (800) 307-3328 * Fax: (310)
> 391-2462
>
>
> On Thursday, March 6, 2014 6:27 AM, Stella Havkin havkinlaw@earthlink.net> wrote:
>
> In most states, the LLC can be reinstated with a form.
>
> Sent from my Stella Havkin's iPad
>
> On Mar 5, 2014, at 10:00 PM, Holly Roark wrote:
>
>
> Debtor filed a personal BK. He had a single member LLC that owns real
> property which is not worth much (approx. $30K). The LLC has debts against
> it which reduce the equity in the LLC to about $15K which we can exempt.
> BUT, the Debtor filed a dissolution of the LLC postfiling and pre341(a).
> So, I am not sure whether the debts of the LLC still offset the equity in
> the property, or whether it's as if he was just a dba. The property is in
> the name of the LLC.
>
> [Ultimately, it may not matter because the property is a big liability, is
> in a high crime area out of state, and probably unsellable, but just in
> case, I need to understand the effect of him dissolving the LLC after
> filing.] I understand that the debtor may not have had the authority to
> dissolve the LLC since it's property of the estate, but it's done already.
>
>
>
> Holly Roark
> Certified Bankruptcy Specialist*
> holly@roarklawoffices.com **primary email address**
> http://www.roarklawoffices.com/
> Central District of California
> Consumer Bankruptcy Attorney
> 1875 Century Park East, Suite 600
> Los Angeles, CA 90067
> T (310) 553-2600
> F (310) 553-2601
> *By State Bar of California Board of Legal Specialization
>
> **For a quicker response, email me at holly@roarklawoffices.com.
> I only use gmail for my listservs, and am likely to miss private emails
> directed to my gmail account.**
>
>
>
>
>
>
Was the LLC debt secured by the LLC real estate? If so, then I wouldn't think the transfer would matter much, since the estate would now have real estate worth $15K, instead of having an LLC worth $15K. If not, then I think the debtor has a problem. The property is now "property of the estate" pursuant to 541(a)(7) and the debtor would not want to attempt to transfer the property back to the LLC, as this could give rise to a Section 549 avoidance action.
Clifford BordeauxBordeaux Law, P.C.3731 Wilshire Boulevard, Suite 600Los Angeles, CA 90010T: 323-762-5529T: 626-405-2345
F: 626-628-1820 E: cliff@bordeauxlaw.com
On Thu, Mar 6, 2014 at 1:10 PM, Peter M. Lively <petermlively2000@yahoo.com> wrote:
Dissolution of the LLC effectuates a transfer of the real property from the LLC to the debtor which may have tax consequences.
Peter M. Lively, J.D., M.B.A.
Law Office of Peter M. Lively * Personal Financial Law Center I 11268 Washington Boulevard, Suite 203, Culver City, California 90230-4647 Telephone: (310) 391-2400 * Toll Free: (800) 307-3328 * Fax:
(310) 391-2462
On Thursday, March 6, 2014 6:27 AM, Stella Havkin <havkinlaw@earthlink.net> wrote:
In most states, the LLC can be reinstated with a form.Sent from my Stella Havkin's iPadOn Mar 5, 2014, at 10:00 PM, Holly Roark <hollyroark22@gmail.com> wrote:
Debtor filed a personal BK. He had a single member LLC that owns real property which is not worth much (approx. $30K). The LLC has debts against it which reduce the equity in the LLC to about $15K which we can exempt. BUT, the Debtor filed a dissolution of the LLC postfiling and pre341(a). So, I am not sure whether the debts of the LLC still offset the equity in the property, or whether it's as if he was just a dba. The property is in the name of the LLC.
[Ultimately, it may not matter because the property is a big liability, is in a high crime area out of state, and probably unsellable, but just in case, I need to understand the effect of him dissolving the LLC after filing.] I understand that the debtor may not have had the auth
The post was migrated from Yahoo.