Partner in LLC files Chapter 7 could use ideas - Posted by domineaux
Posted by domineaux on March 02, 2010 at 10:37:33:
I own an interest in improved commercial rental property that is an LLC. My interest is also inside an LLC.
The other partners are in individual LLCs as well.
One partner has filed for Chap 7 personal bankruptcy. The bankruptcy is in his personal name. I’m not sure, if the BR court can go after his interest since it is in LLC. I suspect not, but that’s why I’m posting here.
I thought to just write a letter to the court indicating my interest to buy this insolvent partner’s interest. Then again I don’t know if he would disclose information about his LLC in a Chapter 7.
Basically, I’m thinking this may be two entirely different issues. One the personal bankruptcy,and two the LLC I am partnered with this person.
This partner, is managing partner in LLC and has stonewalled me for over 3 years with suspicious income statements and claims of no income. I have never received any money for anything. Basically, I have deferred to create a problem, but it is significant enough amount now to be worthwhile to pursue.
I thought maybe I should create and file a lien against the property for my prorata portion of leasehold payments for the past 3+ years. I was thinking to record with county clerk against the property for the amount of money I should have received in gross rents. I realize if the amounts were contested there would always be possibility of negotiation.
This way I could put cloud on title and might advantage me especially if court has power to liquidate property in the LLC. Since all partners and the property are all in LLCs. I’m not sure the court has jurisdiction over the LLCs in a personal bankruptcy.
Regardless, just a few thoughts or ideas would be a help.
There may be other issues I’ve not thought about, but someone might pick up on them reading this.
This discussion might take on additional interests and thoughts I’ve not thought about at this point, but gotta start somewhere.
Thanks