LLC and bankruptcy - Posted by Sam

import · October 7, 2007, 2:50pm

Posted by Rich-CA on October 07, 2007 at 20:15:43:

First, the member is the owner of the LLC and the beneficiary is the owner of the Trust. An LLC is not a separate entity the way a Corp is. As such deficiency can flow through to the owners in both cases. You may also want to look at the financing papers to ensure you have the right to a deficiency judgment.

import · October 7, 2007, 2:50pm

Posted by Sam on October 07, 2007 at 14:50:00:

I sold several properties a few years ago with owner financing to someone who bought them in an LLC. Although I received a sizable downpayment, they are now upside down. I believe the only assets/liabilities this LLC has are the properties purchased from me. What happens if the LLC declares bankruptcy? I know the owner of the LLC has other LLC’s, can I attach to them? The member signed personally, but what if he’s taken everything out of his name and put it in other LLC’s or Revocable Living Trust? Is my sole remedy then to just take back the properties?

Thanks