LLC in default not dissolved - personal vs business liability - frozen bank acct

[2StepsForwrd]

I declared personal bankruptcy, chapter 13.

The credit cards I obtained for my LLCs were also placed on my personal bankruptcy, but some creditor banks said the biz credit cards were not dischargeable, even though some banks decided to close-out the balance of my business card accounts in accordance with the bankruptcy.

Thus, of the creditors that chose to not void the accounts… 1 account was sent to a collection agency and another to a law firm. At this point, I can not pay them. I expect they will get an order from the court to freeze my bank account.

QUESTION 1: Will the creditors be able to get into my personal bank account? Or can they only get into the bank account if it was strictly under an LLC name?

QUESTION 2: Since the LLCs were not officially dissolved (they are in default due to non-renewal), do I personally become liable or are the business accounts still considered business liability?

QUESTION 3: Since I filed for personal bankruptcy and am no longer personally liable for the biz cards, those business accounts should be removable from my credit report, right?

[despritfreya]

Any obligation you personally are liable for is part of your Chapter 13 and I hope you have listed all of them. Any attempt to collect against you personally is a violation of the automatic stay.

The LLC is not in bankruptcy. The LLC is not protected by your bankruptcy. Any creditor of the LLC has the right to sue the LLC (NOT YOU PERSONALLY). Any creditor of the LLC has a right to demand payment from the LLC (NOT YOU PERSONALLY). If the LLC has no assets, no bank accounts, no nothing, then attempting to collect from it won't get far. Filing a law suit against the LLC would be like suing a dead person. HOWEVER, if the LLC is functioning, has assets, and wishes to remain functioning, it needs to deal with its debts.

If you are getting collection letters check to see who the letters are directed to. Is it you PERSONALLY or you as the member of the LLC or the LLC. If it is not against you PERSONALLY and the LLC is out of business, there is nothing for you to do. If the LLC is getting collection calls, you as the member, can tell the collector the LLC is out of business and hang up.

Edt to add. . . Sorry, did not answer the specific questions. . .

1. Creditors of the LLC must look to LLC assets so "no" they cannot get to your personal accounts unless you raided the corporate coffers and transferred assets out of the LLC to hide them.

2. You have no more exposure than you did before. Your bk stops collection against you personally.

3. The accounts will be reported no differently from any other debt you have that is on the CR - it probably should read IIB (included in bk).

Des.

[2StepsForwrd]

Des,
Thanks for your thorough insight and quick response. Much appreciated!!

[2StepsForwrd]

You were very helpful.

[RobAlbright]

that is too good