Legal Question in Bankruptcy in Virginia
LLC Bankruptcy
I have a small LLC that is out of business. I owe approx. $20K in company debts and loans. Can the LLC (since I'm the only member) file for bankruptcy to alleviate these debts without it personally affecting my credit?
Asked on 9/18/08, 7:44 pm
1 Answer from Attorneys
Daniel Press
Chung & Press, P.C.
Re: LLC Bankruptcy
An LLC, like a corporation, is not entitled to a discharge in bankruptcy unless it files Chap. 11 and continues in business. Since a Chap. 11 will likely cost more than $20K in legal fees, this makes no sense. Just pay any remaining assets to creditors and let its existence get terminated.
Answered on 9/18/08, 10:03 pm
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