Does a Chapter 7 Business Debtor need to do Credit Counseling? 19 Answers as of July 08, 2013

Can my LLC file for Chapter 7 Business Bankruptcy? Also, do we need to do credit counseling beforehand or is that only for individuals?

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Engberg Law Office
Engberg Law Office | Harry A. Engberg
Only for individuals.
Answer Applies to: South Dakota
Replied: 7/15/2011
Theodore N. Stapleton, PC
Theodore N. Stapleton, PC | Theodore N. Stapleton
No, that requirement is just for individuals.
Answer Applies to: Georgia
Replied: 7/15/2011
Colorado Legal Solutions
Colorado Legal Solutions | Stephen Harkess
Your LLC can file bankruptcy, although usually it isn't necessary. A company that has been liquidated is usually judgment proof anyway. However, since business owners are often personally liable for the most significant business debts, the liquidation of a company often leads to a need for personal bankruptcy. You should talk to an experienced bankruptcy attorney.
Answer Applies to: Colorado
Replied: 7/15/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
Only individuals need to do credit counseling as a prerequisite for filing bankruptcy.
Answer Applies to: California
Replied: 7/15/2011
Ashman Law Office
Ashman Law Office | Glen Edward Ashman
Get a lawyer. The fact you are asking this question tells us how far over your head you are. Business debtors do not do credit counseling. But corporate debtors CANNOT file without a lawyer (that's prohibited by law) and as a general rule an LLC would not need to file a case. Usually an LLC just closes. What you need to worry about is personal liability. See a lawyer.
Answer Applies to: Georgia
Replied: 7/15/2011
    Dan Shay Law
    Dan Shay Law | Daniel Shay
    Yes and yes. But no corporate BK is needed if not corporate assets to divide. No discharge is issued to a corp. Most people close the corp and file personal BK.
    Answer Applies to: California
    Replied: 7/15/2011
    Apple Law Firm PLLC
    Apple Law Firm PLLC | David Goldman
    Yes
    Answer Applies to: Florida
    Replied: 7/15/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    The Consumer Credit Counseling is only required for consumer debts (incurred for personal, family or household use). Since an LLC does not incur consumer debts, no consumer credit counseling is required.
    Answer Applies to: California
    Replied: 7/15/2011
    Law Offices of Michael J. Berger
    Law Offices of Michael J. Berger | Michael J. Berger
    LLCs are eligible to file Chapter 7 bankruptcy. LLCs do not need to take credit counseling. That requirement is for individuals (people) only, not for LLCs and corporations.
    Answer Applies to: California
    Replied: 7/15/2011
    Ray Fisher Law Offices
    Ray Fisher Law Offices | Ray Fisher
    Yes
    Answer Applies to: Texas
    Replied: 7/15/2011
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