Legal Question in Business Law in New York

Re: Bankrupcy by a member of an LLC

I will add to what Mr. Friedman says: it's time for each member of the LLC to hire an attorney to represent him or her individually in what could be a messy matter. The bankruptcy proceeding may go very smoothly, without a hitch to the LLC members, but it may not (that will be determined by the operating agreement or, in the absence of an operating agreement, the law of the state wherein the bankruptcy petition was filed OR of the state wherein the LLC was formed).

You don't want to be caught without a lawyer in your back pocket when you need one.

Good luck -- to all of you.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

Re: Bankrupcy by a member of an LLC

You should look first to the operating agreement as this document will usually deal with such circumstances. If there's no operating agreement you'll have to be guided by state law.