I have an LLC company that we opened with another party.
Both have equal ownership of this LLC.
Turns out now he is going to file for personal bancruptcy, as well as bancrupt his other 2 copmanies that he owns himself. His houses are in foreclosure and significant money is owed under his other companies he has.
The LLC we have together is in good standing.
How will his other bancruptcies, forclosures and such affect me?
Will I be liable in any way? How will his things affect me and our LLC partnership?
Most of his problems are from the real estate.

Appreciate any help.
Thanks
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Hello alex:

Won't have ANY effect on you - cepting your partner ain't too good at business.

excon

I guess I'm not answering this question... I'm asking a new one. Let me know if there is a correct way to do this. Will this affect chances for the existing LLC to apply for loans if needed?

Hello 2much:

On the corporate law page, you can press the button called "new thread".. But, it's cool, really. This guy ain't coming back..

If the existing LLC has good credit, then the bad credit of its stockholders and/or directors won't matter.

excon

Great! I just started a new LLC and am the sole owner. I was wanting to partner with my consultant but he filed bankruptcy and went through a foreclosure recently. I was thinking that this might affect our company if we need to apply for loans.

Hello again, 2:

Read what I said again. I said IF the LLC has good credit...

Yours doesn't. New LLC's don't have credit. Until it does, any lender is going to want a personal guarantee, in which case HIS bad credit WILL effect your company's ability to borrow.

excon

Thanks EXCON, gotcha... pretty soon we'll be making so much money it won't matter. ;)

I really am 2much, eh? :confused: Have a great day and thanks for the good information. I won't be partnering anytime soon!