If debtor dissolves an entity during his personal BK do those assets
Posted: Wed Mar 05, 2014 10:00 pm
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**
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.**
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
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