My sister in law is thinking of declaring bankruptcy. I’m concerned about this because I hold two rental properties with her. We are holding the homes in an LLC. So I think were okay but just wanted to double check. Is there anyway that the creditors could come after the business’s assets?
I’m not an attorney, so seek competent legal counsel for something this significant. There may be a free bankruptcy legal aid office in your area that can give you some guidance.
That being said, I believe if the rentals have loans and your sister personally guaranteed those loans, there may be an opening for the banks. Also, if either of you have done anything to “pierce the corporate veil” like commingle personal and business funds or assets, you may be at risk.
Again, talk to an attorney to get a clear answer before proceeding.
