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Bankruptcy

Posted on: 05th Nov, 2008 06:30 am
If i hold my investment properties in a LLC can I claim bankruptcy on it or the propertis go into foreclosure. Will or can they come after personal assets since teh laons are in my name?
Hi rl!

Welcome to the forums!

Yes, you can definitely file bankruptcy on LLC. And your credit report should not be harmed because as far as I know, the business lines of credit or loans usually will not be reported to your personal credit report. Generally, the lenders do not come after the personal property if the loan is not in your name. But in your case, there is a chance that they may come after your personal assets. I would suggest you to consult a bankruptcy lawyer to be on the safe side.

Feel free to ask if you have further queries.

Sussane
Posted on: 05th Nov, 2008 06:45 pm
Hi rl,

I guess your personal assets won't be affected if there's a foreclosure on investment property or if you file a bankruptcy involving your LLC.

However, a foreclosure on investment property or a bankruptcy involving your LLC does affect your business credit score which is quite different from your personal credit score.

Take Care
Posted on: 06th Nov, 2008 03:16 am
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