I may be filing for Chapter 7 bankruptcy protection. Last year I became a guarantor of two mortgages for an LLC that a friend & I established. Several months afterward I left the LLC. I no longer own any part of it or work for it. However, I’m still liable for the mortgages. The mortgages are totally current. The LLC pays the mortgage on time and religiously.
My question is this: Since I’m filing for bankruptcy protection, how will that affect this LLC that I use to be a part of? Will those houses be foreclosed upon by my creditors? I’m personally going to lose my own properties that I hold title to and I realize that fact.
My concern is that the LLC will suffer. I care simply because I care about the people that are in it now. Please note that the LLC has warranty deeds. This wasn’t some crazy deal where I bought properties and Quit Claimed it to some corporation.
The LLC has no way of purchasing these mortgage instruments. It is not cash rich, nor are it’s current principals.
The LLC is not the guarantor on the mortgages–you are. Unfortunately, the LLC will not protect the loans in a BK. You’ll have to reaffirm those debts or let the properties go…
