Will my LLC be affected by my wife filing a chapter 7? 14 Answers as of July 04, 2013

I am a 40% shareholder of an LLC, my wife has played no part in the LLC but I heard that since we started the company after the marriage she might have ownership rights and it could be affected. Is this true?

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Dan Shay Law
Dan Shay Law | Daniel Shay
Correct. If she files Bankruptcy, your assets (technically those acquired during marriage) must be listed on Schedule B too since CA is a Community Property State and you are married. If you own and LLC, or part of an LLC, that has assets make sure her interest is exempt on Schedule C.
Answer Applies to: California
Replied: 7/14/2011
Law Office of Maureen O' Malley
Law Office of Maureen O' Malley | Maureen O'Malley
You and she started it? Is she named anywhere? Does she benefit from it? VA isn't a community property state, so her filing shouldn't affect you.
Answer Applies to: Virginia
Replied: 7/4/2013
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
When one spouse files a bankruptcy the community property assets are part of the assets. Not all property owned by a spouse is a community asset. A more cautious approach might be to file a chapter 13 payment plan.
Answer Applies to: California
Replied: 7/11/2011
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
Depends on where money came from yours or her.
Answer Applies to: California
Replied: 7/4/2013
Law Office of Harry L Styron
Law Office of Harry L Styron | Harry L Styron
Everything that you obtain by your labor (includes entreprenuerial and intellectual efforts) during marriage in California is community property. Community property is owned by both spouses together. Community property is liable for the debts of either spouse before or during marriage (see California Family Code section 910 et seq). When one spouse files a Chapter 7 all of the community property and all of the community debt becomes part of the bankruptcy estate, subject to disposition by the bankruptcy trustee.
Answer Applies to: California
Replied: 7/7/2011
    Sentinel Law P.A.
    Sentinel Law P.A. | Joshua Cossey
    Yes, your wife wife may be considered to hold a 50% interest in any shares you have in the company, along with any other unprotected assets that you have acquired after marriage. This response does not create an attorney-client relationship. Unless you are already a client of Sentinel Law, P.A., pursuant to an executed attorney-client agreement, you should not use, interpret, or rely on this response as legal advice or opinion. Do not act on any information in this response without speaking to an attorney, as there may be details surrounding your situation that would give rise to further explanation or clarification.
    Answer Applies to: Florida
    Replied: 7/7/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Yes, California is a community property state. She may have an interest in it. She needs a competent lawyer to file this case.
    Answer Applies to: California
    Replied: 7/7/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    That is correct. If your interest in the LLC was obtained during the marriage, it is a community asset. Thus, the 40% interest must be valued and, hopefully, exempted to protect it. What exemptions are available depends on the exemption laws applicable to your wife's case. Exemption laws are based on the state where you resided for the 2 years prior to filing your bankruptcy case or, if you lived in more than 1 state during that period, in the state where you resided for the greater part of the 180 days prior to that 2 year period.
    Answer Applies to: California
    Replied: 7/7/2011
    William C. Gosnell, Attorney at Law
    William C. Gosnell, Attorney at Law | William C. Gosnell
    As long she has no ownership rights and you are alive her filing a chapter 7 will not affect your llc.
    Answer Applies to: Tennessee
    Replied: 7/4/2013
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    If you live in a community property state, 1/2 of all assets acquired during the marriage belong to your wife and would be property of her bankruptcy.
    Answer Applies to: California
    Replied: 7/7/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    Yes, this is absolutely true.
    Answer Applies to: California
    Replied: 7/4/2013
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    It may or may not be, and the answer will likely not depend on your marriage but on other things. If your lawyer does everything right, the answer probably will be no. If she files pro se, I'd get worried.
    Answer Applies to: Georgia
    Replied: 7/6/2011
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