Impact on LLC

[branainaz]

This is my first thread or post, so bear with me. I have 105K in unsecured credit card debt. I invested that money into remodeling of our home,assuming I would be able to refinance and pay of the CCards. Then came the perfect storm. I had to abandon the mortgage industry and start driving a school bus and our home value decreased by 25% in 18 months. I have exhausted our life savings to keep current with the CC debt and Mortgage. I am now 90 days past due on all the CCards. I have consulted with an attorney on the possibility of filing Chapter 13.
My concern is this: I am a general partner in an LLC. My interest is worth about $500K. That value is from vacant land that the LLC has been unsuccessful selling. If I file Chapter 13 what will be the impact on my interest and on the other partners in the LLC? My Attorney said that it probably wouldn't be effected but I cannot take a chance on losing my interest and cannot put the general partners at risk, they are my brothers and sisters.

[StartingOver08]

So the LLC only has this land as an asset? You are sure the land's value is $500k? What percentage of the LLC is yours?

I would interview several BK attorney's in your area to make sure you are able to file BK without impacting the LLC. I don't see how the Trustee will leave a $500k asset on the table and not force the sale to obtain your percentage to satisfy your creditors. Unless you are able to buy out your percentage in your Ch 13.

[DeadManCrawling]

The only way I see you keeping the LLC out of this is if your plan is completed successfully at 100% payback. Otherwise, the trustee has an obligation, legally, to sell it to satisfy the debts. With an asset that valuable, you do not want to leave this to chance, considering the partners are relatives.

Another possibility would be the trustee assuming an ownership interest or shares in the LLC, to be satisfied when the land is sold. If you are in a 100% payback plan, it would not be put into play unless the plan failed.

Definitely talk to more attorneys.

Good luck on this.

[branainaz]

Yes the only assets the LLC has is vacant land. My interest percentage is 15%.
The partners are my siblings they are unable to buy my interest out. Because we have been unable to sell the land it's value can only be estimated, somewhere between 300 and 500K. Can I file 13 on a 100% pay back plan? If the trustee could assume my ownership interest there would be enough money when the land sells to pay back the credit cards. How long will they give me or the LLC to sell the land?

[DeadManCrawling]

Those are questions better addressed to an attorney, honestly. The laws and customs vary so much by state I doubt anyone can give you a concise answer. And even a correct answer could be wrong, based on the trustee you get.

The last thing you want, I think, is for the trustee to force a sale. That could be very damaging to the equity owned by your siblings/partners.

Maybe someone can offer general advice, and good luck.

[branainaz]

Thanks for your reply and I appreciate your honesty. Having spoke with my attorney this afternoon he reminded me of my unique case. I believe much can be learned from these communications but I am reminded that all of us have different situations and that advice from learned ones should not be taken lightly.