In need of a chapter 13 expert..

[melady]

Ok

I have a question and I am very confused so please if anyone could share their wisdom it would be much appreciated.

If someone takes on the shares of a LLC company that is in debt, therefore taking the responsibility away from the current owners of the business , then the new share owners file for chapter 13 bankruptcy, are the old and new share owners still liable for debts and taxes..

[lrprn]

If someone takes on the shares of a LLC company that is in debt, therefore taking the responsibility away from the current owners of the business....

How did the 'someone' take on responsibility for the shares? Through a verbal agreement? A signed contract? Was the shares' shift done through a signed legal contract/court ruling?

....then the new share owners file for chapter 13 bankruptcy, are the old and new share owners still liable for debts and taxes..

When your 'someone' filed Ch 13, the value of the LLC shares was considered an asset which must be protected by their state bankruptcy exemptions in order for them to retain them in full after filing. How are the debts and taxes you mention related to these LLC shares? Are you the 'new share owner' or the 'old share owner'?

We need more specific information about this situation to help you sort this out.

[jwmc1]

Only if they personally guaranty the debt and that guaranty is not released after the sale. The loan would also be in default if the bank did not grant permission for the sale of the company to occur. Most standard commercial loan documents prohibit any capital structure changes or change in ownership without the permission of the bank.