LLC and Bankrupsty
Get Legal Help Today
Secured with SHA-256 Encryption
LLC and Bankrupsty
In my divorce I was awarded one mortage free (rental) property and a huge amount of debt. My income has diminished and I cannot find any way to meet my obligations. If I were to deed the property to an LLC and then file bankrupsty would it protect my one investment? I have hit bottom.
Asked on June 12, 2009 under Bankruptcy Law, Kansas
B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Probably not. You would still own the LLC, and your interest in the LLC would be an asset. However, if you still have some earned income and a positive cash flow from this property, it is possible that you could find a way through this without losing the building. You might be able to get a mortgage loan on the building to consolidate the debt with a longer and lower-interest repayment schedule. Or, a Chapter 13 proceeding might be worth looking into.
I think you absolutely need the help of an experienced bankruptcy attorney. Give him or her all the details of your financial situation, to get reliable advice on what to do next. One place you can find a qualified lawyer is our website, http://attorneypages.com
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.