Are my accounts receivable of my LLC taken into consideration if I file for personal bankruptcy?
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Are my accounts receivable of my LLC taken into consideration if I file for personal bankruptcy?
I am the 100% owner of an LLC (online marketing) . I am concerned that my LLC (which has accounts receivables and some money in the bank) is going to come under fire for my personal bankruptucy. I don’t want my employees to be effected. Can the Trustee rule that the LLC is “me” since I am 100% owner and therefore come after the money due the LLC and the money in the LLC’s bank account or is the LLC protected from my personal debts?
Asked on June 12, 2012 under Bankruptcy Law, Missouri
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
You cannot hide it and it will be up to the trustee and judge to determine how those assets look for your personal bankruptcy. Your ownership of the LLC becomes part of the assets you need to state and show in the personal bankruptcy. Your best bet is to speak with a bankruptcy attorney about the next steps and how you wish to avoid impacts on employees.
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