Legal Question in Bankruptcy in Indiana

Re: asset protection

If I understand your question, you are asking whether personal bankruptcy affects your interest in an LLC, which happens to own rental real estate. The answer is yes. At a minimum, your interest in the LLC needs to be disclosed on your personal bankruptcy petition and valued accordingly. If the Trusteebelieves there is equity in your interest in the LLC then he/she will go after it and liquidate it. This is a judgment call by the Trustee, which is affected by many factors, such as whether you have a small interst in the LLC, whether the disposition costs exceed any benefit in liquidating your interest, or whether there is a ready market for your interest. However, when you say "your" LLC it sounds like you own it 100%. Also, you do not mention that the LLC rental property is mortgaged. If indeed you own 100% of the LLC and the value of its rental properties exceed by much any liabilities it has, then the Trusteee will have to go after your interest.

My suggestion is to see an attorney that is well versed in workouts and bankruptcy law, including Chpaters 7, 11 and 13.