Legal Question in Bankruptcy in Georgia

LLC Member Liability In Bankruptcy

Are any members of a limited liability company held personally liable for any of the LLC's debts if the LLC goes bankrupt? Can any of the creditors to whom the LLC owes money take the members personal assets or sue them for the LLC's debt?


Asked on 9/01/05, 8:32 pm

1 Answer from Attorneys
Bernd Stittleburg Stittleburg Law Offices, LLC

Re: LLC Member Liability In Bankruptcy

If any member of the LLC personally guaranteed a debt to a creditor, then yes he or she can be held liable. Check the language of your contracts with the creditors. It is not unusual for those contracts to have clauses in them making the person signing personally responsible for the debt should the LLC not pay it.

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Answered on 9/02/05, 9:01 am


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