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inertiaesp
11-07-2005, 08:43 PM
Missouri.........

What happens when a member of an LLC files chapter 7 bankruptcy? Is their interest assigned to the trustee? Does it matter if the LLC is not making a profit at the time of bankruptcy? If the member does not lose interest in the LLC, can the other members expel that person (even if the operating agreement fails to cover this)? I know there are a lot of questions here, but it seems to be a rather gray area in my research. Any thoughts or knowledge would be greatly appreciated.

elklaw
01-03-2006, 04:30 AM
The trustee can assume ownership of the LLC share but if it has no value, not likely that will happen as a practical matter.

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