Suing a business thats' closing it door

[no1chebon]

What is the name of your state? Kansas. My question regards an investment (3% share @30k) into a health club that is closing its doors due to legal fees against a former landlord. No details if biz
is filing for bankruptcy or what entails (found out today). Due to this 30k investment, I too shall have to file chapter 13. Can or will a private lawyer or the court appointed overseer recover any of the loss from this LLC business? Any amount would certainly offset some personal debt and may prevent my own bankruptcy. Thanx...(wish I had more details!)

 

[JETX]

"Can or will a private lawyer or the court appointed overseer recover any of the loss from this LLC business?"
*** If the business files for bankruptcy, the court will review their assets. If a chapter 7 (liquidation), all assets will be (or should be) recovered and sold to repay the creditors. If a chapter 11 (business reorganization), the business will be allowed to continue operation and start a 'repayment plan' to repay the creditors. However, as an investor, you have NO claim to the assets.

"Any amount would certainly offset some personal debt and may prevent my own bankruptcy. Thanx...(wish I had more details!)"
*** As noted above, you are an investor in this business. As an investor, your funds are fully 'at risk'. If the company ceases operation, you will likely lose 100% of your 'investment'.

 

[no1chebon]

Thank you....I knew as much but was hoping. second question.
Do I write off the maximum $3000 each year as a capital loss for the next 10years or in what other manner can I get a tax break?
Thanx for the prompt reply...!