66 East Main Street, 3rd Floor Little Falls, NJ 07424

Cannot Hide Under a LLC Umbrella & Request the Court to Pierce the Veil for Filing Bankruptcy

Bankruptcy Assets
Share on facebook
Facebook
Share on linkedin
LinkedIn

Assets cannot be held by a LLC and be included as a personal asset when filing Bankruptcy.

A debtor had several businesses that were limited liability corporations (LLC).   When the Debtor filed bankruptcy, the Debtor’s personal residence was owned by his LLC.  

During a period of 14 years, the Debtor transferred his home between his LLC and himself and did several refinances.  At the time, the Debtor files for bankruptcy,  his residence is owned by the LLC.   However, the Debtor wants to exempt his residence as being his personal asset.  Debtor has a month to month lease for his residence.

Debtor wants his residence to be excluded from his Bankruptcy filing.  https://njbankruptcylawfirms.com/dont-adopt-a-strategy-with-respect-to-truth-telling/

However, the Court found that the residence which the Debtor rents cannot be exempted in bankruptcy. 

As a result, the Trustee takes the home and does not renew his month-to-month lease. 

You cannot ask the Court to pierce your corporate veil when you decide to file for personal Bankruptcy.