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Can a personal bankruptcy affect my LLC?

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So I have an LLC under my name, 100% ownership. I’m considering filing personal bankruptcy.

Some facts that might help you help me.
1. I’m in California
2. I have $10,000.00 roughly in my LLC bank account, nothing else after that.
3. I have about $30,000.00 in non-secured debt.

If I file a Chapter 7 (personal bankruptcy) assuming I qualify, will the trustee get a hold of my LLC and assets that are under that LLC?

How will this affect my LLC, if it will affect it at all?

I’m not too smart, I have no idea what laws apply so be nice but be honest… and speak like you’re talking to your grandpa.

This entry was posted on Sunday, July 20th, 2008 at 5:25 pm and is filed under Bankruptcy Law. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

2 Responses to “Can a personal bankruptcy affect my LLC?”

  1. dwnjhl Says:
    July 21st, 2008 at 2:48 pm

    Yes, because your business is under your name/social security number… If you have your “incorporated” it is safe, and it would also be safe if you were personally sued. This would make your business it’s own entity even though you would still be the sole owner. Check with Labor and Industries on how to go about this…

  2. Lov4nzyx2 Says:
    July 23rd, 2008 at 10:21 pm

    I’m not a lawyer, but just recently entered into an LLC. As I understand it, especially since you are 100% owner of the LLC bankruptcy can definitely affect it, it’s one of your assets. LLC’s are created to prevent someone from suing YOU privately. (again, that’s how I understand it from my atty)