LLC in Personal Chap 7

[ratrodguy]

My spouse and I are managers (not members) of an AZ LLC. It is my understanding that in BK that neither the trustee nor the court (at least in the cases I've read) cannot force a distribution of either assets or cash even in a single member LLC. My ultra conservative Attorney thinks otherwise. Thoughts?

[justbroke]

There's caselaw on both sides that say that it's a protected entity or that the Trustee can step into the single-member debtor's shoes to act as the debtor. I think this will continue to be litigated until the cows come home. While I had an S-Corp, the perils of a single-member LLC seem obvious at first, but there is just too much conflicting information about just how protected an LLC single-member debtor is, when they themselves, personally, are in Bankruptcy.