No creditor-debtor relationship?

[ValleYum]

Lord, I paced so much I thought I'd need new hardwood floors!

Corkie, the one thing I would not percolate about is setting up that separate bank account for your social security to be deposited into.

[Corkie]

Quick question: Would it be worthwhile to ask whether this is a core bk. proceeding, given the accusation of fraudulent conveyance? Just read Stern vs. Marshall.

[despritfreya]

Quick question: Would it be worthwhile to ask whether this is a core bk. proceeding, given the accusation of fraudulent conveyance? Just read Stern vs. Marshall.

Stern does not apply. Nor, do I believe this is an issue of a "conveyance". Your adversary is attempting to seek that a claim it beleives it has against you to be non-dischargeable under a specific bk Code provision due to some sort of fraudulent misrepresentation. This is a core proceeding. You certainly can argue Stern (no harm in trying) but I believe the argument will not "win".

Des.

[Corkie]

Thank you. I thought this might be the answer. Crafting the perfect response is an interesting challenge in and of itself. Essentially all I have is that i did not do it personally and for personal gain, but on behalf of the business; that the claim should be against me as general partner of the business. just can't think of anything else.

[HHM]

That probably is your best argument, the LLC is liable and the extent of your liability only extends to being a "trustee in assets" of the LLC. As such, you would only be personally liable for the value of any assets of the business that were improperly sold (not counting the one you sold the plaintiff).