Starting an LLC after filing but before creditor meeting

[JustinT222]

I'm getting mixed answers and I need to know so I don't end up with all of an investors money tied up into my personal bankruptcy.

I filed about 2 months ago with my creditor meeting being on 5/19 of this month.

I got into an argument with my boss and quit my job.


I was approached by someone in my wife's family about starting a business and he's wanting to give me some capital to start the business.



Now my question....since the bankruptcy has been filed can I accept this money and start a LLC without it being seized by the bankruptcy court?

Or do I need to wait until after my discharge to start?

[justbroke]

LLCs and how you deal with contributions or loans can be simple or complex.

I guess that I'm saying that the answer will be nuanced, right? Will this person be a member of the LLC? Are they making a loan to you personally, a loan to the LLC or will tey be a member of the LLC? What will your operating agreement say about this?

As for when you "should" create an LLC my answer would be to wait until discharge. I would learn more about operating an LLC as well since most are single-member and many people don't clearly separate their financial life from the LLC.

[JustinT222]

Thanks for the response!

I guess my question is since its post petition would any money that is put into the business account since I am 100% owner of the company be able to be taken by the trustee?

The money is coming from my wife's uncle who I do have to pay back but he is not a member of the LLC

[justbroke]

I would wait. I don't think that "technically" the Trustee could attach this as property of the estate, but you never know. I'm not sure too many people run into this issue as they typically wait.

[LadyInTheRed]

The trustee has no right to money you had no right to at the time you filed BK. However, if the trustee learns of the transfer, it could lead to a lot of questions, investigation and hassle.If the trustee suspects you were trying to hide funds, there is no guaranty that he wouldn't be able to convince the judge that he is right. I agree with JB. It is better to wait and avoid any need to explain.