What is the scenario in an ABC or a Chapter 7 Bankruptcy, when a shareholder of the company that is dissolving, is also a creditor of the company?
Providing the transactions are arms length, does the shareholders’ other company have equal priority with other unsecured creditors in order to collect the debt that is owed?
The shareholder has an LLC, which owns real estate. The LLC rented the real estate to the dissolving corporation. Can the LLC collect the back rent from the debtor, which he is also a shareholder?
Does this shareholders’ LLC have the same lawful priority as the other creditors that are owed?
1 Answer from Attorneys
There are a lot of things that go into this. It might be possible to have the LLC paid before the other creditors, but I would need to know a lot more about this to give you any answer.
You really need to sit down with a lawyer, since there is a fair amount of money at risk.
Please give me a call. The telephone discussion will be free of charge, and I will let you know what I believe I can do to assist you further.
My contact information can be obtained from the links below, just click on the Attorney Profile link. Let my secretary know you found me through LawGuru.
Disclaimer: Your question and any response does NOT create an attorney-client relationship between you and this law firm. You can not rely on the statements made by an attorney given over the internet. The exact facts of your situation, including facts which you have not mentioned in your question, may completely change the result for your situation.
Related Questions & Answers
My 22 yr daughter owes $12,000.00 in credit card debt and $5,000.00 in student... Asked 8/09/09, 2:22 pm in United States New Jersey Bankruptcy Law
My home i was remarried in 5/2002 we seperated in 2006 subsequently we are divorced... Asked 5/18/09, 1:30 pm in United States New Jersey Bankruptcy Law
Forclosure , bankrupcy , separation? I am currently married and we are separating,... Asked 5/12/09, 7:02 pm in United States New Jersey Bankruptcy Law
Bankruptcy Can I file bankruptcy and exclude my home from the debt? I need relief... Asked 5/11/09, 7:42 am in United States New Jersey Bankruptcy Law
Bankruptcy Discharge Can I discharge NJ State License suspension fines in a Chapter... Asked 5/07/09, 12:20 pm in United States New Jersey Bankruptcy Law