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.
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Chapter 11 Bankruptcy Attorney
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?
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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.
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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.
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