Can you file bankruptcy on an LLC or corporation?
Can you file bankruptcy on an LLC or corporation?
Most of us think of bankruptcy as something that involves individuals who have gone over their heads in debt, or those who have failed at running a business. In fact, most people think that bankruptcy cannot be applied to corporations. This is not the case. According to several different sources, you can file for Chapter 11 bankruptcy on an LLC or corporation.
In fact, it was just recently that a businessman in Northern California filed an involuntary Chapter 11 bankruptcy on his own company. He wanted to reorganize and sell off his company's assets separately from any debts he may owe personally. He also wanted to protect himself from any lawsuits that may arise from his business' activities while under bankruptcy protection.
If you're asking this question, then you're probably wondering if you can get rid of your student loan debt by filing for bankruptcy if you own an LLC or corporation. You can't. You can only file for bankruptcy as a "person." If you're operating under an LLC or corporation, those entities are considered legal persons and have their own rights and responsibilities in the eyes of the law. They can own property, enter into contracts, and be subject to taxation, among other things. However, they do not have biological systems, nor do they have feelings or emotions. They are distinct from their owners in every way but one: they are treated as a person in the eyes of bankruptcy law.
If you need a Bankruptcy Lawyer, please call this law firm for a free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
