Bankruptcy

LLC BANKRUPTCY

Over time, one or more of our LLC clients may go bankrupt.  If they do, can a bank provide in the LLC’s operating agreement that the LLC may not file for bankruptcy except with the bank’s consent?  According to the very recent decision of the Delaware bankruptcy court, discussed in the post under the link […]

NEW ARTICLE ON SERIES LLCS AND BANKRUPTCY

Lawyers who form series LLCs for their clients under the laws of their own or other states may find interest in the article below. 35-MAR Am. Bankr. Inst. J. 24 American Bankruptcy Institute Journal March, 2016 SERIES LLCS: CAN A SERIES FILE FOR BANKRUPTCY, AND WHAT IF IT DOES? Steven J. Boyajian Robinson & Cole […]

ARTICLE ON WHETHER BANKRUPTCY ESTATES CAN LIQUIDATE PARTIAL INTERESTS LLCS

The article cited below will be of interest to lawyers working with bankruptcy estates holding fractional interests in LLCs. 34-OCT Am. Bankr. Inst. J. 32 American Bankruptcy Institute Journal October, 2015 CAN AN ESTATE EFFECTIVELY LIQUIDATE A FRACTIONAL INTEREST IN AN LLC? Richard J. Mason McGuireWoods LLP Chicago Patricia K. Smoots McGuireWoods LLP Chicago Copyright […]

BANKRUPTCY

If you’re forming LLCs for your clients, you have to know what is likely to happen to LLCs and their members when the LLCs or one or more members go bankrupt.  For one thing, the answer is likely to involve LLC statutory pick-your-partner provisions and charging order provisions, which are key provisions in any LLC […]