Legal Question in Bankruptcy in Arizona

I am a 50% partner in an LLC. The only asset that the LLC holds is a home in Mexico. The 50 year Mexican Bank Trust is in the name of the LLC. My partner in the LLC also holds 50%. All decisions in the LLC would have to be made by "mutual agreement". She filed Chapter 7 and now her bankruptcy trustee seems to think he can sell her half of the home in Mexico on the courthouse steps. That would require having the LLC partnership paperwork redrawn. Aren't there any protections for me? I'm not filing a BK, but yet I am being forced to possibly accept a stranger as my partner and change my LLC paperwork against my will. Don't I have any rights in this situation?

Thank you in advance for your help.


Asked on 7/09/10, 4:21 pm

2 Answers from Attorneys
Jeff Biddle Biddle Law Firm, PLLC

When she filed, her assets, including the interest in the LLC, became assets of her bankruptcy estate. You can go to the courthouse (or auction house) and bid on the property, too. It will likely sell for a significant discount. Other than that, you are stuck with having a new partner.

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Answered on 7/12/10, 1:13 pm
Donald W. Hudspeth The Law Offices of Donald W. Hudspeth, P.C.

The trustee can sell your partner's half. Why don't you make an offer to the trustee to buy out your partner?

Jo Ann Joy

Attorney/Business Adviser

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Answered on 7/13/10, 2:22 pm


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