Legal Question in Bankruptcy in Louisiana

Re: Bankrupty

If it is the LLC which is being sued, the LLC can file Chapter 7 bankruptcy. The LLC would have to give up any assets it has, in exchange for walking away from its debts. However, it is usually the case that the owner of an LLC has personally guaranteed debt of the LLC. In that case, in order to escape liability on the debt, the owner would have to file Chapter 7 bankruptcy. Or if you as the owner are being sued personally, then you would have to file bankruptcy to escape the debt. The LLC, however, would be an asset of your bankruptcy estate and would be subject to seizure by the Chapter 7 trustee. This is a complex area of the law and you are advised to seek the services of a good bankruptcy lawyer.

Re: Bankrupty

Are you being sued personally or is the LLC being sued?