If debtor dissolves an entity during his personal BK do
Posted: Thu Mar 06, 2014 3:55 pm
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
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