Bankrupcy protection of LLC partners

You should know that both bankruptcy and divorce can and do have an adverse impact on the membership stake of the member who experiences those two situations. Hence it is a common practice for an LLC operating agreement to have provisions that either call for automatic involuntary transfer of the LLC interests back to the remaining members or a right of first refusal to buy out the party that is the successor to the membership stake by virtue of these situations. You may want to consult a local business attorney to consult you on how to best manage the risk associated with these and other situations if you have not done so already.

I hope this helps.

Disclaimer: This answer is for informational purposes only and does not constitute general or specific legal advice, nor create an attorney client relationship.