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Business Debt/Debt and bankruptcy related to an LLC

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Expert: - 1/14/2008


Question
My partner and I have an LLC, but due to low sales are no longer able to pay
our bills. We have an 18 month contract to rent our current space. My
partner's parents got a line of credit out in their name for us and we
constructed a personal contract with them to repay the loan. My parents also
gave us a cash loan in the very beginning. And on top of that, my friends also
gave our business a small loan. For my parent's loan and my friend's loan we
made personal contracts which we both signed.
My partner is filing personal bankruptcy. He wants the business and
mentioned consolidating the loans and getting help from his parents to keep
running the business. How can I get out of this LLC and be free from the
loans and make sure my parents and my friends get paid back?

Answer
Janice:
Thank you for your inquiry. I regret that your business has not fared well. You have provided basic information about where you have obtained some working capital for your business, and apparently that you still have some outstanding obligations. The information you have given is not enough for me to determine the best path for your recovery. With all due respect, if your business is not making money and you are unable to repay what is owed, why would your partner want to continue? I do understand you are acting under some sort of agreement in relation to repayment of personal loans. I highly recommend that you all sit down and come to an agreement as to who and how these debts will be repaid, even if it means someone gains employment to honor those agreements. If you can afford to, it would behoove your parents and you to seek advice of legal counsel to understand their ability to collect upon that agreement if the partner does file for Bankruptcy protection.
I hope this answer provides some better direction, and would appreciate you taking a moment to rate my answer so others may benefit as well.
Respectfully,
Christine Janklow

Business Debt

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Christine Janklow

Expertise

As President of SettleSource,Inc. a business debt settlement firm, I invite you to inquire about all aspects of business debt solutions to best determine which may be most appropriate. If you have questions such as: What is debt settlement and how process provide debt relief to my business? What options are available to deal with my business debts? Is it possible for a business owner to negotiate their own settlements? Why is debt settlement preferable to filing a bankruptcy or debt consolidation? Why are creditors willing to provide settlements to a business? How will settling debts affect credit scores? or How to rebuild a business after debt is eliminated. Please ask it now! For more information regarding how debt settlement can help your business, please visit www.SettleSource.com and place your inquiry. Mention All Experts to have a confidential no cost consultation with Christine. If this is your business situation time may play a very important factor in getting matters resolved proactively before they have negative affects on the business.

Experience

My expertise is specific to providing business solutions that will have profound positive impacts on the financial health of businesses. I have 25 years experience as an entrepreneur and have developed national sales programs; strategic alliances; product development; marketing programs; business and turnaround plans and debt settlement programs all providing methods to improve the financial outlook for large and small businesses. In the area of commercial debt settlement I have over 10 years experience working with large and medium corporations and closely held businesses to enable successful debt reduction and turnaround. I am a professional debt arbitrator and have negotiated with major banking institutions as well as vendors, suppliers and other trade creditors.

Organizations
Provisors;Turnaround Management Association; Los Angeles area

Publications
Accounting Today; Web CPA; National Restauarant Association;Los Angeles Daily News; Today Magazine Monthly series of business articles entitled "Brand News."

Education/Credentials
Bachelor of Business Administration; Associate of Arts Merchandising

Past/Present Clients
American Airlines, American Express, Safeway Inc., New York Life, consumer products manufacturers; retailers, food service industry and other small businesses and service providers.

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