The owner of an LLC declared bankruptcy but used his personal credit cards to pay for business expenses. These card were also paid off every month by the LLC until bankruptcy was declared. Are these credit cards part of the bankruptcy?

ANSWER

Expert Mark Anderson's Answer:

No.  The LLC is a seperate legal entity.  If the cards are in the individuals name, then the accounts are not part of the LLC's bankrutpcy.  If the cards had been opened in the LLC name and there was no personal guarantee, then cards would a part of the the LLC's bankruptcy.    I hope this answers your question. 

Mark Anderson, JD

Montana

21 yrs experience

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