Chapter 7 And Llc Assets

[ellsworth6]

I own a single member LLC that I used to buy equipment related to my business.  I made some bad real estate investments personally(not through the LLC) and found myself in a situation where I have crippling credit card debt and can't sell my houses fast enough to bail myself out in time.

If I were to file a Chapter 7 bankruptcy and liquidate my personal assets(including the investment properties), would my creditors be able to seize my business equipment owned by the LLC?  The LLC does business out of my home office and I have transferred money between my business and personal checking accounts in the past(both directions at various times).  Does this mean they will see the business assets as personal assets and liquidate all the business property to satisfy the bankruptcy?

I look forward to your answer...  Thanks in advance for your help!

[Arie]

It depends on what exemptions you have available under your State's laws.  Your interest in the LLC is an asset.  If it is not exempt, then the Trustee can take over your interest in the corporation and "vote" to liquidate the corporation, but that would only be if the amount realized after payment of corporate debts would yield some positive amount.