Legal Question in Bankruptcy in Virginia

my brother is filling for bankruptcy. he owns 40% of the family LLC which is real estate property. I own 41% and our father owns the balance. What happens to his percentage when it goes into liquidation


Asked on 7/08/10, 6:35 am

1 Answer from Attorneys

Daniel Press Chung & Press, P.C.

You need to review the LLC operating agreement, as there are a number of possibilities. It may go to the trustee and be sold; it may have no actual net value over and above the exemption amount and be abandoned back to your brother. It may not be transferrable, but may be subject to a charging order whereby any payments or distributions are payable to the bankruptcy estate or to whoever buys the right to payment from the trustee. These are only some of the possibilities - a lawyer would need to see the documents to advise you.

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Answered on 7/11/10, 8:30 am


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