Share

Nevada Estate Planning and Asset Protection Blog

Tuesday, March 26, 2013

Bankruptcy Judge refuses to dissolve LLC

A recent case further bolsters Limited Liability Protection, in this case, under Federal Bankruptcy Law. 

In In re Warner, 480 B.R. 641 (Bankr, N.D. W. Va. Sept 27, 2012,) the trustee in the bankruptcy of an LLC member asked the Bankruptcy Court for a declaration that the LLC was dissolved pursuant to the LLC's own operating agreement, which called for dissolution upon the bankruptcy of a member.  In this case, the Court denied the Trustee's motion, relying on provisions in the Bankruptcy Act that trump other contracts.  This ruling left the trustee with very limited options for liquidating the member's LLC interest and paying out to the bankruptcy creditors. 

 

 

While most of my asset protection planning involves third-party (i.e. non-bankruptcy) creditors, however this case is important in light of the fact that the court upheld asset protection provided by the member's LLC. 

 

-Tiffany Ballenger, Esq.

 

 


Archived Posts

2019
2018
December
November
October
September
August
July
June
May
April
March
January
2017
2016
2015
2014
2013



© 2019 Phillips Ballenger, PLLC | Disclaimer
3605 South Town Center Drive Suite B, Las Vegas, NV 89135
| Phone: 702-997-5701

Our Practice Areas | Estate Planning | Trusts | Trust FAQs | Wills vs. Trusts | Asset Protection | Advanced Estate Planning | LGBTQ Estate Planning | Business Formation & Business Planning | Business Succession Planning | Premarital Agreements | Nevada Probate | Probate, Trust, and Estate Litigation | Trust Administration & Litigation | | Our Process | About Us

FacebookGoogle+Linked-In PersonalLinked-In Company

Law Firm Website Design by
Zola Creative