previously had an s corp that failed had personal debt incurred for the business used personal credit cards for business use etc. roughly 5 years ago. want to now start an LLC.
Not necessarily. If you transferred all of the assets into the LLC to avoid the debt (or without getting reasonable value in return), the creditors may seek to reverse the transactions as fraudulent conveyances.
9 lawyers agree
I don't understand why you don't file for bankruptcy so that you can start this LLC on a clean slate. Are there significant assets that you are trying to protect?
The above is general legal and business analysis. It is not "legal advise" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here. Please visit my web site: www.avanesianlaw.com for more information about my services.
1 lawyer agrees
Family Law Attorney
Probably not. It sounds as if you are moving personal assets into your LLC, which your creditors will deem a fraudulent conveyance to avoid paying them.
We can be reached at 507.334.0155 (Toll Free: 888.777.5009). Our web address is: www. corbin-law-office.com. Answers on Avvo are not to be considered a response to a specific legal issue in a specific jurisdiction - they are to be considered only general responses to hypothetical scenarios posed by the questioner. For specific legal advice, please consult with a licensed attorney in your jurisdiction. No information contained herein should be construed as a solicitation for business, an offer to perform legal services in any jurisdiction in which the attorneys of Corbin Law Office are not licensed, or the dissemination of legal advice. No creation of an attorney-client relationship should be assumed or implied. We are a debt relief agency. Corbin Law Office helps people file for bankruptcy relief under the bankruptcy code.
4 lawyers agree
You are going to have to sit down with any attorney who knows the law. What you're proposing is fraught with peril. If you have nonexempt assets, the transfer presents a potential problem (as possibly fraudulent under 11 U.S.C. § 548). If this is a single-member LLC, you may have other problems. Pursuant to section 541(a) of the Bankruptcy Code, the trustee could potentially cause liquidation of the LLC. See In re Albright, 291 B.R. 538 (2003). Please note that general advice on Avvo simply will not do.
5 lawyers agree