{"id":623,"date":"2016-02-22T22:28:44","date_gmt":"2016-02-23T03:28:44","guid":{"rendered":"http:\/\/www.michaelsmithlaw.com\/blog\/?p=623"},"modified":"2023-11-28T13:37:33","modified_gmt":"2023-11-28T18:37:33","slug":"llc-interests-members-bankruptcy-part-ii","status":"publish","type":"post","link":"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankruptcy-part-ii\/","title":{"rendered":"LLC Interests and a Member&#8217;s Bankruptcy, Part II"},"content":{"rendered":"<p>[The other articles in this seven-part series are here: \u00a0<a href=\"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankruptcy\" target=\"_blank\" rel=\"noopener\">Part I<\/a>, <a href=\"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankruptcy-part-iii\" target=\"_blank\" rel=\"noopener\">Part III<\/a>, <a href=\"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankruptcy-part-iv\" target=\"_blank\" rel=\"noopener\">Part IV<\/a>, <a href=\"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankruptcy-part-v\" target=\"_blank\" rel=\"noopener\">Part V<\/a>, <a href=\"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-and-a-members-bankruptcy-part-vi\" target=\"_blank\" rel=\"noopener\">Part VI<\/a>, <a href=\"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankuptcy-part-vii\" target=\"_blank\" rel=\"noopener\">Part VII<\/a>.]<\/p>\n<p><em>In re Lee<\/em>, 524 B.R. 798\u00a0(Bankr. S.D.Ind. 2015) involved an Indiana limited liability company with five members, one of whom, Lester Lee, held 51 of the 101 votes allocated to the members and served as the sole manager of the LLC.\u00a0 Although Lester had no right to receive distributions from the company, he was entitled to compensation for his services as manager and, like the other members, he held rights to buy the interests of other members in certain circumstances.<\/p>\n<p>After Lester filed for bankruptcy protection, the trustee sought a determination from the bankruptcy court that the bankruptcy estate held all of Lester\u2019s rights in the LLC, both economic and noneconomic, including the right to cast his 51 votes as a member. The Bankruptcy Court agreed.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankruptcy-part-ii\/\"  title=\"Continue Reading LLC Interests and a Member&#8217;s Bankruptcy, Part II\" class=\"more-link\">Continue reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>[The other articles in this seven-part series are here: \u00a0Part I, Part III, Part IV, Part V, Part VI, Part VII.] In re Lee, 524 B.R. 798\u00a0(Bankr. S.D.Ind. 2015) involved an Indiana limited liability company with five members, one of whom, Lester Lee, held 51 of the 101 votes allocated to the members and served [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-623","post","type-post","status-publish","format-standard","hentry","category-limited-liability-companies"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>LLC Interests and a Member&#039;s Bankruptcy, Part II &#8212; Indiana Business Law Blog &#8212; February 22, 2016<\/title>\n<meta name=\"description\" content=\"In re Lee, 524 B.R. 798\u00a0(Bankr. S.D.Ind. 2015) involved an Indiana limited liability company with five members, one of whom, Lester Lee, held 51 of the &#8212; February 22, 2016\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankruptcy-part-ii\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Michael R. Smith\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"LLC Interests and a Member's Bankruptcy, Part II &#8212; Indiana Business Law Blog &#8212; February 22, 2016","description":"In re Lee, 524 B.R. 798\u00a0(Bankr. S.D.Ind. 2015) involved an Indiana limited liability company with five members, one of whom, Lester Lee, held 51 of the &#8212; February 22, 2016","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankruptcy-part-ii\/","twitter_misc":{"Written by":"Michael R. Smith","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankruptcy-part-ii\/#article","isPartOf":{"@id":"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankruptcy-part-ii\/"},"author":{"name":"Michael R. 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