Legal Question in Business Law in Oregon

LLC Closures

When closing a LLC can I be sued personally for any outstanding debits? Is there a way to file a bankrupcy with out the expense of an attorney?


Asked on 5/24/05, 6:31 am

1 Answer from Attorneys

Susan Burns Law Office of Susan Ford Burns

Re: LLC Closures

The answer to your question is "it depends."

If you have guaranteed any of the LLC's debts personally, you are liable for them, regardless of whether or not the LLC files bankruptcy. It is not uncommon for the members of an LLC to be required to guarantee bank loans and leases, among other debts (in fact, many banks and landlords will require this). I also see the requirement of a personal guarantee in trade lines of credit from some vendors.

If you take any of the LLC's assets, you are liable to its creditors for the value of those assets.

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Answered on 5/24/05, 8:48 am


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