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LLC Liquidations
(by James [MA])
Mar 12, 2004 10:36 AM
RE:
LLC Liquidations
(by Dan [MA])
Mar 12, 2004 10:52 AM
RE:
LLC Liquidations
(by James [MA])
Mar 12, 2004 10:59 AM
RE:
LLC Liquidations
(by Neil [MD])
Mar 12, 2004 11:45 AM
Click Here to send this discussion to a friend| I just read about an interesting case involving an LLC. The bankrupcty court (re Ashely Albright, Case No. 01-11367) ruled that a one-member LLC can be forced to liquidate so that creditors can obtain the LLC's property when the member files for bankruptcy. I'm still trying to find the full opinion without having to subscribe to a law site. --192.223.226.5 |
| You probably already know this James, but MA happens to be one of the only states (maybe the only one) where you can't have a single member LLC. --207.138.153.34 |
| Thanks Dan. I didn't know that. This ruling was from a BK court in CO. --192.223.226.5 |
| It's not surprising. In fact it makes perfect sense. The court has a right to "get" the assets that the bankrupt person has. The court can even force a sale of assets in an LLC if there are two or more people so that the person that is bankrupt will receive their payout and can turn it over to the court. (In reality, the other members would buy the bankrupt person out thereby avoiding a liquidation.) --172.174.219.244 |