Posted by Gary on March 03, 2010 at 22:44:16:
In Reply to: Partner in LLC files Chapter 7 could use ideas posted by domineaux on March 02, 2010 at 10:37:33:
I would spend some time reading the LLC's operating agreement. It should spell out in great detail the responsibilities of the managing member as it relates to record keeping/accounting/tax matters, etc.
There are two types of property (real and personal), each one represented differently on the BK schedules. The LLC owns the real property. Your interest (and each of the members of the various LLC's if their are more than one) is personal property.
His personal BK should not affect the LLC (other than his personal property interest in the LLC needs to be listed as an asset in his personal BK estate). His failure to properly list any of his assets could be considered fraud and/or perjury by the BK Trustee (as I am reasonably certain it is a sworn statement made under penalty of perjury).
The BK Trustee would likely entertain a reasonable offer to buy the managing member's interest. Keep in mind that the Trustee's obligation is to the creditors not to your interests. It would be wise to have a well-purposed vision of how you arrived at the value, keeping in mind that few folks would want an interest in an LLC where they are in "partnership" with unknowns that are not of their choosing (this should seriously diminish the value- at least in the mind of the Trustee).