Must I file separate bankruptcy petitions for my LLC and myself?

There is no such thing as a joint bankruptcy petition for a debtor and a corporation. You can do one for husband and wife, but not the debtor and his/her LLC. If you file a Ch. 7 for both you and the LLC, separately, they can be administratiely consolidated by the court, but that's as far as it goes. An LLC will not receive a discharge anyway. And finally if you file an individual Ch. 7, your trustee would be able to take over the LLC and liquidate it. It seems to me this is a 2 party dispute anyway, so the personal Ch. 7 would pretty much get rid of the creditor and discharge you from any liabilities for the LLC and its creditors. As a safety measure, I would include all of the LLC's creditors in your Ch. 7, and mark them all as disputed, contingent and unliquidated, so when you do get a discharge, those creditors cannot come after you through some back-door using the corporation by calling it your alter-ego or some sort of constructive trustee theory, or fraudulent transfer theory. This way you get rid of everything in your personal Ch. 7 and cut the LLC loose. Click on "Find a Lawyer" above and retain a seasoned bankruptcy lawyer in your area to take this one head-on.

Without knowing more details, I'd say (1) there would be no good reason to file bankruptcy for the LLC (you can dissolve it yourself) and (2) there is good reason to file a personal bankruptcy to discharge any personal liability for debts incurred as a result of obtaining credit for the LLC, etc.

Did you guarantee the loans personally? If so, you should and could file two CH7 BKs, one for the LLC and one for you personally. This will make you judgment proof. Consult a BK attorney in your area ASAP. Best of luck! www.bbfamlaw.com

File for yourself and dissolve the LLC . If it has no assets there is no need to file a bankruptcy for it. Remember, however, that you will be personally liable to the IRS for any payroll taxes and personally liable to the State Board of Equalization for any sales taxes. A good bankruptcy attorney should be able to walk you through the process.

An attorney should evaluate whether you are personally responsible for the business debts. If so, then a personal chapter 7 case will protect you from the business creditors as well as any personal debt you have. It's not likely that a chapter 7 case is needed for the LLC if there are no assets to be sold off and distributed to creditors. Re: the lawsuit: it is not difficult to file an answer to a complaint, and doing that would allow you some additional time to gather your records and information for your bankruptcy attorney. If you are ready to file your chapter 7 now, then it may not be a problem to file it before your answer is due. Do talk to one or more bankrutpcy attorneys ASAP. Good luck.

File personal chapter 7. Then see what happens. Likely nothing because you have just discharged your debt including anything you owe the corporation. Do have counsel during the process it is not worth saving a few hundred bucks and getting it wrong. Wishing you a much better financial future and good luck

Attorney Elie sets forth with precision and completeness the answer! I just want to add that you learn from the past. Thus, you can always start a new business doing the same thing you were doing before if you want or obtain possibly a franchise again , but with all your debts gone. Henry Ford, Howard Hughes, etc. are among many that learned from past debts, filed bankruptcy, and moved on...successfully too. Good luck. You need and want to enjoy your fresh start also. But the most important thing is to meet with an attorney as you asking this question means you have not. You care about 2 goals: keeping everything you have equity in and discharging all your debts. If you don't have any of the exceptions to discharge you will obtain that goal; most exceptions are set forth in 11 USC. 523 (Google it) like child support, some income taxes, traffic (in a ch 7) and criminal fines , and presumption of student loans. But some debts are dischargeable in a ch 13 but NOT in a ch 7 so you want to make sure and your attorney will discuss any such types with you also! Attorney Elie states a great answer on listing disputed debt in case every any attempt to "Pierce the Corporate Veil" is raised the creditor's claim would still be discharged in bankruptcy although If the debt is not personal I might list the debt owed at zero or put in the body but not $ column so that your case statistics are accurate as that could affect filing a ch 13 also. Your exemptions depend on what state you have lived in in the last 2 years and thus if in your state, then your states exemptions will apply. Most persons filing keep everything they own but your attorney will confirm that with you when they learn everything you own and the equity thereof! Some secured debts like homes, vehicles, other secured debts an attorney will discuss your options on also as you must list any debts; but that does not mean you will lose them unless you have too much equity or are in default on paying for them! Discuss those options if they apply with your attorney too. But other issues can arise that can greatly harm your case. Just one example: If you paid back a relative $3,000 11 months ago and now file bankruptcy next week, the trustee can SUE that relative to retrieve that $3,000 (under what is called a preference) for the benefit of the bankruptcy estate. As a result, most attorneys don't charge to meet with them the first meeting so meet with one no matter what. Many great attorneys can be found right here on in your state so look, call, and meet one as soon as you can. You should also want to know when to file: is there an advantage of waiting versus filing now and who should you pay between now and then! Good luck and enjoy your later fresh start.

I would concentrate on filing the personal bankruptcy first.