Bankruptcy and LLC s

What is the name of your state? North Carolina.
My wife and I are in fiancial difficulty to say the least. We lost our home about 9 months ago. We do have a business that is an LLC and we though by putting it into that form that if we had to go bankrupt on the personal side that the business was safe. I now understand that is not correct.
I wish to protect the assets of the business but we are between a rock and a hard place. MY income has dropped from in excess of 90,000 6 years ago to who know what right now. I have not income because of lack of sales and we take nothing from the business because it is still getting off the ground.

Are there any options? How about a divorice and I take on most of the debts? I just do not know what to do.

Thank you for any directions that you may put me in.

Mike

[djohnson]

Originally posted by Mike robin
What is the name of your state? North Carolina.
My wife and I are in fiancial difficulty to say the least. We lost our home about 9 months ago. We do have a business that is an LLC and we though by putting it into that form that if we had to go bankrupt on the personal side that the business was safe. I now understand that is not correct.
I wish to protect the assets of the business but we are between a rock and a hard place. MY income has dropped from in excess of 90,000 6 years ago to who know what right now. I have not income because of lack of sales and we take nothing from the business because it is still getting off the ground.

Are there any options? How about a divorice and I take on most of the debts? I just do not know what to do.

Thank you for any directions that you may put me in.

Mike

Ok a few questions first.

Why do you not want to include the business when it isn't making any money?

You can still keep the business and file depending on the circumstances.

What kind of business is it?

The assets that you are talking about, who actually owns them? How are they titled?


A divorce would not help you at all. By taking on the debts in a divorce proceeding has no bearing on the creditors. If you are both on the loans or whatever it is you want to file on then they will still come after both of you.

To answer your questions.
1. The business is making money. We have reinvested everyting back into the business. We opened the retail quilt store a little over 2 1/2 years ago with an inventory between 8 and 10 thousnd dollars at wholesale. The year end inventory was over $50,000. We just have not taken anything out so as to grow the business.

We see the business as our future and the only way we will have money for retirement.

The business as I mentioned is a retail quilt store where we sell everything that a quilter needs for their hobby. We just do not sell quilts.

The store was a sole proprietorship in the beginning and we changed to the LLC in April of last year. Under the LLC my wife and I are the only two members. I believe that the LLC owns the inventory at this point. We only owe about $3000 to $4000 on store bills.

I hope this answers the questions and lets you give me some additional guidence.
Mike