A New York limited liability company (LLC) can file for Chapter 7 or Chapter 11 bankruptcy.
In Chapter 7, the assets of the company are liquidated and used to pay its creditors. Any remaining debt is then eliminated, and the LLC goes out of business. In Chapter 11, the LLC stays in business, reorganizes, and makes payments to creditors over time. Chapter 7 is the most common bankruptcy filing for LLCs.
If your LLC is in trouble due to excessive debt, please give our offices a call. We are knowledgeable in all aspects of law involving LLCs in New York State, and can advise you as to the appropriate action to take in your LLC’s specific circumstances, whether that is bankruptcy or something else.