If and LLC declares bankruptcy can the owners bid for its assets at the BK auction using debt owed to them by the LLC?
2 Answers from Attorneys
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Dr. Donna Kay Cindy Kakonge, BJ, MA, TESOL, LLB, EdD
Why would the Canadian attorney expect to be paid to answer a question in the FREE section of LawGuru on US Law?
Asker, your claim has NO VALUE until it is approved. Even if your claim is approved, how much is it worth when pro-rated with the other claims filed in this case? It is highly unlikely your claim will be the only one, and the auction must pay auction expenses and other CASH costs from the sale of estate property. So offsetting your bid for estate assets at the bankruptcy auction against funds you might get for your proof of claim is not going to fly. Read the notice that came with the information about the auction for the LLC's assets. It will spell out the rules.
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