Just found out...

[tiger4life]

I own a LLC which I will be dissolving when I file Chapter 7 personally, I have about 70,000 in CC and around 50,000 in loans. 20,000 of the loans is with my bank and I am going to reaffirm that loan with my bank and they told me that's great and they had no problem with that and keeping my accounts open.
Here is my question, I have been worried to death about my receivables and company assets one of which and the most important is the van my wife drives. Well the bank manager showed me the documentation of the loan and it said clearly that the loan was given with all receivables and assets being collateral and he said he owns everything. So every thing should be hands off for the other creditors right?

And if this is the case should not every company starting out take out a loan with there bank, it's almost like having the "Corporate Shield" that LLC, S Corp and others suppose to do but don't.

[jlmaca]

I own a LLC which I will be dissolving when I file Chapter 7 personally, I have about 70,000 in CC and around 50,000 in loans. 20,000 of the loans is with my bank and I am going to reaffirm that loan with my bank and they told me that's great and they had no problem with that and keeping my accounts open.
Here is my question, I have been worried to death about my receivables and company assets one of which and the most important is the van my wife drives. Well the bank manager showed me the documentation of the loan and it said clearly that the loan was given with all receivables and assets being collateral and he said he owns everything. So every thing should be hands off for the other creditors right?

And if this is the case should not every company starting out take out a loan with there bank, it's almost like having the "Corporate Shield" that LLC, S Corp and others suppose to do but don't.

It's difficult to answer your questions without more info. Yes you will get a corporate shield with the LLC. But the asset value of the LLC will come in to play when you file chap 7. If your LLC is worth say $15k, you must declare it and it could affect your chap7. Is your CC debt company or personal? Also why disolve the LLC?

[tiger4life]

It's difficult to answer your questions without more info. Yes you will get a corporate shield with the LLC. But the asset value of the LLC will come in to play when you file chap 7. If your LLC is worth say $15k, you must declare it and it could affect your chap7. Is your CC debt company or personal? Also why disolve the LLC?

Well all the debt is business related but my signature is on everything so I am filing personal and then just close the LLC and after filing open a new company. The question really was since my bank is working with me and they hold all my receivables and assets as collateral for the $20,000 dollar loan then nobody will get anything but them if they want it and they get first. That is what my Banker told me but I am waiting on a call from my Lawyer.

[jlmaca]

Well all the debt is business related but my signature is on everything so I am filing personal and then just close the LLC and after filing open a new company. The question really was since my bank is working with me and they hold all my receivables and assets as collateral for the $20,000 dollar loan then nobody will get anything but them if they want it and they get first. That is what my Banker told me but I am waiting on a call from my Lawyer.

Be sure to ask your attorney how Federal Bankruptcy courts treat that LLC debt. Your bank may have one idea to protect themselves and the court may have another idea to protect all creditors equally. Just a thought.

[tiger4life]

That is what I am worried about this not being as good as it seems, I think I have read that in Alabama Federal BK laws and exemptions do not apply here. Hopefully I will hear from my lawyer Monday. If this does work it will be a blessing in my upside down world right now.

[iv65536]

Does the LLC have a positive net worth? If not, I wonder if the BA may simply abandon the LLC. I'm assuming the LLC is not filing.

[tiger4life]

Know it does not and we will just shut it down, plus it is a electrical business and it's worth is tied directly to me, meaning if I'm not there it has no chance at all.

[iv65536]

Negative net worth I believe the trustee will abandon the LLC. The asset is the interest in the LLC, not the LLC's assets.

[myid4u2c]

Need more information, what accounts are they going to keep open if you are disolving the LLC? I do not now all the details, however there is no way I would reaffirm any loans period based on what you have posted. If you want to pay them afterward you still can with out reaffirming, however I would not.
Now for the van, If the receivables are assets and the van does not have a lein prefected by the bank my opnion is they are out of luck. The corporation can choose to pay who it wants, however the other creditors including the bank can do a involentary BK on the LLC and the creditors could be forced to pay some money back.