Does past individual bankrptcy effect LLC and other members
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I have a LLC that may be going south. Im not sure as to my protection of my personal belongings if we have to shut the doors. The only agreement that was made with a personal guarantee if our office rent. What happens if you get sued for remaining bills. Can we file a bankruptcy for our company if we have filed a personal bankruptcy several years ago?
If a member of a LLC files a bankruptcy, it is usually an event of "dissociation" within the meaning of most states limited liablity company acts. This is good for the limited liability company because the trustee of the filing member won't become a member of the LLC. He may have a claim against economic benefits which accrue from the limited liability company. The member is no longer a member and the trustee succeeds to economic benefits but not membership. The LLC may well want to acquire the Trustee's interest. Or the Trustee may abandon that interest leaving the former member still a member post-petition. Much varies based on the value and marketability of the interest in question.
