Best Answer

== == The answer to your question depends upon the law in your state. If an individual files for bankruptcy most assets of the individual may be sold or otherwise disposed of in a Chapter 7 bankruptcy in to partially satisfy the debts of the individual. While an interest in an LLC is an asset of the individual, many states have statutes within their LLC Act which provide that an LLC interest may not be taken outright by a creditor, but rather a charging order will be issued. Typically this means that the individual who is the holder of the LLC interest will continue to be a member of the LLC and will continue to vote the LLC interest; however, any distributions which are made by the LLC to the individual would be paid to the creditor or creditors rather than to the individual due to the charging order.

User Avatar

Wiki User

โˆ™ 2007-10-08 20:04:40
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: If you have an LLC and file chapter 7 can they take your part of the LLC?
Write your answer...
Related questions

Can an LLc file a bankruptcy?

Yes, a chapter 7 or 11. It can get complicated, so be sure to consult a bankruptcy lawyer with experience in LLC bankruptcies.

Can you file a business llc and personal taxes separately?

Do I have to file personal taxes if I own a small LLC? Or just file business taxes.

Can you file Chapter 7 Bankruptcy without liquidating your LLC business?

Yes maybe....but depends whether is Single or Multi Party LLC. There is a fair amount of information available on this. There are pros and cons depending on your particular situation and whether it is Single Or Multi LLC as mentioned.

What company manufactures the Grand Cherokee?

Jeep, which is a part of Chrysler LLC.Jeep, which is a part of Chrysler LLC.

Can you file both a dba and llc?

you can if you believe you can

Who can file for bankruptcy chapter 7?

Any person of legal age or legal entity (corporation, partnership, LLC, etc.) can file for c. 7. Whether there is any need or point in filing depends on other facts.

Can someone open an LLC while in Chapter 13 bankruptcy?

Yes, nothing in the bankruptcy law prevents you from opening an LLC.

Can a non profit create an LLC?

Yes, although you will have to file a bit differently than with a typical profit LLC.

NJ If you have an llc and file a chapter 7 can they sue you as an individual?

If YOU file than yes...and your interest/ownership of the stock in the LLC is an asset that may be used to pay your personal debts/liabilities. If the LLC files, than your personal assets aren't involved...of course your investment in the LLc will likely become worthless....and there will be an e review to make sure that self serving transactions weren't done. Finally, normally, until a business (the LLC) is well established, any loans/leases, etc someone makes to it tey require you to sign for personally you would be personally liable for them anyway.

Do wage earners have to worry about LLC tax returns?

Filing a LLC tax return is required of any LLC operating in the United States. If you are just an wage earner that does not own a business, then you would not have to file a LLC tax return.

What kind of application is needed to start an LLC?

You need a name registery form and to file papers with the state. Read more at

What tax form is used to file LLC federal tax return?

An LLC can elect how it will be taxed, as a Corp or Partnership...and of course the forms follow.

What does LLC after a business name stand for?

LLC = Limited Liability Company It is sometimes mistakenly referred to as a Limited Liability Corporation. However, an LLC can file taxes as either a Discarded Entity, a Corporation or a Partnership.

What are the annual fees for an LLC in Florida?

$138.75 for an LLC and you want to make sure that you file before May 1st to avoid a $400 filing fee.

How do I know if I have to file an LLC tax return?

This site has all the answers!

Is Chrysler part of Dodge?

Dodge is part of Chrysler Group LLC

Where can you buy archway ginger snaps in southern California?

Archway Cookies LLC filed for chapter 7in Bankruptcy Court see link:

In a two member LLC how do you file taxes to be treated as a partnership?

LLC is Limited Liability Company. It's allowed by state statute. But the IRS doesn't recognize LLC as a classification for federal tax purposes. Under IRS Default Rules, a Limited Liability Company with at least two members is considered as a partnership. Form 8832 is Entity Classification Election. An LLC with two or more members would only have to file Form 8832 if the LLC didn't want to file as a partnership. As a partnership, the LLC would file Form 1065 (U.S. Return of Partnership Income). For more information, go to for Publication 541 (Partnerships) and Publication 3402 (Tax Issues for Limited Liability Companies).

How do you file taxes if you are a limited liability company?

It depends. Unless the owners of the LLC elect to have it treated as a corporation, then an LLC which has at least two members is treated as a partnership and files a partnership tax return, Form 1065. If there is only one member of the LLC, then the IRS disregards the LLC as a separate tax reporting entity entirely. If the single member is an individual, then the member reports the LLC's income and deductions on the individual's person 1040, usually on Schedule C (for a business) or Schedule E (for real estate). If the single member of the LLC is a corporation, partnership or trust, it likewise files the information on its entity tax return (1120, 1120 S, 1065, 1041, etc...) If the members of the LLC file an election, the LLC may be treated as a corporation or an S corp. In that case, the LLC would file an appropriate return (Form 1120 or 1120 S).

What tax form should an LLC owned by a husband and wife file to report income and expenses?

LLC (Limited Liability Company) is a type of business that's allowed by state statute. But LLC isn't recognized as a classification for federal tax purposes. This means that an LLC must file a tax return as a corporation, partnership, or sole proprietorship. An LLC with at least two members can choose to be classified as a corporation or as a partnership. If you choose corporation status, you must file Form 8832 (Entity Classification Election). You don't need to file Form 8832 if you're an LLC filing as a partnership. Corporations file Form 1120 (U.S. Corporation Income Tax Return). Partnerships file Form 1065 (U.S. Return of Partnership Income). Each partner's share of income, expenses, etc., is then entered on Schedule C (Profit or Loss from Businss). For more information, go to the IRS Small Business screen at Select from the left column A-Z Index for Business to view/print the article, Limited Liability Company (LLC).

Can file chapter 13 and protect your home if home is under your llc?

If you are sure of the handbag you wish to purchase go directly to the website. Want a coach bag? Go directly to the Coach site, find one you want, and see if you can get it cheaper on ebay!

How do you form a LLC in Colorado?

There are a few simple steps to forming a LLC in Colorado. First off you'd need to choose a name for your LLC, then you'd need to file articles of organization, after that you'd need to appoint a registered agent, and 4 other steps.

How does one form an online LLC?

there are several sites that will give you a step by step instruction on how to file for a online LLC. The best company that I found was MyCorporation where for a small fee they will help you complete the process.

Which is correct LLC or LLC?


If an LLC declares bankruptcy how are owed employee wages handled?

If an LLC declares Chapter 11 bankruptcy the employees wages will continue to be paid as normal. However, under a Chapter 7 bankruptcy, the employees are listed as creditors, and wages are paid out with other creditors from any remaining assets, if any remain.