If we are putting property that we own into an LLC and one of the 3 people in the LLC files bankruptcy, can the property be in jeopardy?

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If we are putting property that we own into an LLC and one of the 3 people in the LLC files bankruptcy, can the property be in jeopardy?

Asked on March 29, 2012 under Business Law, Ohio

Answers:

Steven Fromm / Steven J Fromm & Associates, P.C.

Answered 9 years ago | Contributor

Why would you possibly enter into an agreement with a bankrupt partner.  This is just asking for a bad result.  Why complicate your life and get involved with someone who obviously has done a bad job of managing their finances.  In this economy, what are you thinking.

Guy Kirkpatrick

Answered 9 years ago | Contributor

The property must be properly transferred to the LLC for value.  Any transfer within 3 to 6 months of a BK can be set aside by trustee.  Be careful.


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