Soon to be partner in BK any risks on my end?

[Lolita Ellis]

Hey BP Fam,

I have been pondering for several months on this so I decided to reach out to you and ask of you opinions. As they are always helpful and make us exercise our critical thinking skills! I am thinking of forming an Llc with a friend but in our process of discussing I was informed that they are in BK…..

We were going to combine funds but both of us were advised by an attorney that this may not be in our best interest. The attorney suggested she check with her BK attorney…. He also suggested that we consider just a joint venture as I have read b many. My friend is concerned with protection. It was then suggested that we each for an llc then do a joint venture together. Any thoughts?

Ive read many prior posts on BP and I did propose the idea of the JV because of some of the questions and answers that Holdman, Scott, Gully, Carey, and everyone else has stated. It had me concerned and almost scared in my pants and that was the purpose…

Your thoughts? Questions I should be asking or concerns I may be missing?

[Jerry W.]

@Lolita Ellis , bankruptcy is a pretty complicated issue. First off follow the advice of the attorney. If you pay him and he is wrong he is liable to you. That is not true for advice on internet forums. By all means listen to advice, but in touchy legal matters run them all past the attorney.

Keep in mind there are prefiling assets and post filing assets. Any asset owned prior to filing is subject to seizure or sale by the trustee in Chapter 7. The rules are different for Ch 13. If a person has huge medical bills they cannot repay, even if they make a good income, or had a business go south and owe large amounts of money, after filing, the new income that comes in is often (not always) free of claims of the bankruptcy trustee.

Only an attorney with knowledge of bankruptcy laws who looks at the specific facts can advise you safely. It is great to get ideas here, just do not act on them in this case without sound legal advice from an expert.