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

Cannot Hide Under the LLC Umbrella and Want the Court to Pierce the Veil for Bankruptcy

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Background:

Debtor had several businesses that were limited liability corporations (LLC).   The Debtor’s personal residence was owned by his LLC as an asset. During a period of 14 years, Debtor transferred his home between his LLC and himself and did several refinances.  Debtor files for bankruptcy and his residence is owned by the LLC.   Debtor wants to exempt the residence.  Debtor has a month to month lease for his residence.

Court Ruling:

Residence which Debtor rents cannot be exempted in bankruptcy.  Trustee takes the home and does not renew his month-to-month lease.  You cannot ask the Court to pierce your corporate veil.