{"id":631,"date":"2016-02-22T23:25:35","date_gmt":"2016-02-23T04:25:35","guid":{"rendered":"http:\/\/www.michaelsmithlaw.com\/blog\/?p=631"},"modified":"2023-11-28T13:37:32","modified_gmt":"2023-11-28T18:37:32","slug":"llc-interests-members-bankruptcy-part-iii","status":"publish","type":"post","link":"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankruptcy-part-iii\/","title":{"rendered":"LLC Interests and a Member&#8217;s Bankruptcy, Part III"},"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>,\u00a0<a href=\"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankruptcy-part-ii\" target=\"_blank\" rel=\"noopener\">Part II<\/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>The Indiana Business Flexibility Act creates two distinct categories of LLC rights:\u00a0 (1) interest, or \u201ca member&#8217;s economic rights in the limited liability company, including the member&#8217;s share of the profits and losses of the limited liability company and the right to receive distributions from the limited liability company,\u201d I.C.\u00a023\u201118\u20111\u201110; and (2) other rights that are conferred upon members.\u00a0 Many courts\u00a0refer to the two categories as economic and noneconomic rights. \u00a0The Business Flexibility Act treats those two categories of rights very differently.<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a><\/p>\n<p>It is indisputably clear that economic rights in an Indiana LLC are property rights because the Indiana statute expressly says so:<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankruptcy-part-iii\/\"  title=\"Continue Reading LLC Interests and a Member&#8217;s Bankruptcy, Part III\" 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,\u00a0Part II, Part IV, Part V, Part VI, Part VII.] The Indiana Business Flexibility Act creates two distinct categories of LLC rights:\u00a0 (1) interest, or \u201ca member&#8217;s economic rights in the limited liability company, including the member&#8217;s share of the profits and losses of the [&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-631","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 III &#8212; Indiana Business Law Blog &#8212; February 22, 2016<\/title>\n<meta name=\"description\" content=\"The Indiana Business Flexibility Act creates two distinct categories of LLC rights:\u00a0 (1) interest, or \u201ca member&#039;s economic rights in the limited liability &#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-iii\/\" \/>\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 III &#8212; Indiana Business Law Blog &#8212; February 22, 2016","description":"The Indiana Business Flexibility Act creates two distinct categories of LLC rights:\u00a0 (1) interest, or \u201ca member's economic rights in the limited liability &#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-iii\/","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-iii\/#article","isPartOf":{"@id":"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankruptcy-part-iii\/"},"author":{"name":"Michael R. Smith","@id":"https:\/\/www.hpindiana.law\/business-blog\/#\/schema\/person\/22651dd1a387f83ca7560f7eba353e29"},"headline":"LLC Interests and a Member&#8217;s Bankruptcy, Part III","datePublished":"2016-02-23T04:25:35+00:00","dateModified":"2023-11-28T18:37:32+00:00","mainEntityOfPage":{"@id":"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankruptcy-part-iii\/"},"wordCount":614,"articleSection":["Limited Liability Companies"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankruptcy-part-iii\/","url":"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankruptcy-part-iii\/","name":"LLC Interests and a Member's Bankruptcy, Part III &#8212; Indiana Business Law Blog &#8212; February 22, 2016","isPartOf":{"@id":"https:\/\/www.hpindiana.law\/business-blog\/#website"},"datePublished":"2016-02-23T04:25:35+00:00","dateModified":"2023-11-28T18:37:32+00:00","author":{"@id":"https:\/\/www.hpindiana.law\/business-blog\/#\/schema\/person\/22651dd1a387f83ca7560f7eba353e29"},"description":"The Indiana Business Flexibility Act creates two distinct categories of LLC rights:\u00a0 (1) interest, or \u201ca member's economic rights in the limited liability &#8212; February 22, 2016","breadcrumb":{"@id":"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankruptcy-part-iii\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankruptcy-part-iii\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankruptcy-part-iii\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.hpindiana.law\/business-blog\/"},{"@type":"ListItem","position":2,"name":"LLC Interests and a Member&#8217;s Bankruptcy, Part III"}]},{"@type":"WebSite","@id":"https:\/\/www.hpindiana.law\/business-blog\/#website","url":"https:\/\/www.hpindiana.law\/business-blog\/","name":"Indiana Business Law Blog","description":"Published by Indianapolis Corporate Attorneys \u2014 Harshman Ponist Smith &amp; Rayl, LLC","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.hpindiana.law\/business-blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.hpindiana.law\/business-blog\/#\/schema\/person\/22651dd1a387f83ca7560f7eba353e29","name":"Michael R. Smith","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/095342975260becd46df795933b96309ce26cc246013b9675f2ebfbfb15aeb88?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/095342975260becd46df795933b96309ce26cc246013b9675f2ebfbfb15aeb88?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/095342975260becd46df795933b96309ce26cc246013b9675f2ebfbfb15aeb88?s=96&d=mm&r=g","caption":"Michael R. Smith"}}]}},"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.hpindiana.law\/business-blog\/wp-json\/wp\/v2\/posts\/631","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hpindiana.law\/business-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hpindiana.law\/business-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hpindiana.law\/business-blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hpindiana.law\/business-blog\/wp-json\/wp\/v2\/comments?post=631"}],"version-history":[{"count":1,"href":"https:\/\/www.hpindiana.law\/business-blog\/wp-json\/wp\/v2\/posts\/631\/revisions"}],"predecessor-version":[{"id":2203,"href":"https:\/\/www.hpindiana.law\/business-blog\/wp-json\/wp\/v2\/posts\/631\/revisions\/2203"}],"wp:attachment":[{"href":"https:\/\/www.hpindiana.law\/business-blog\/wp-json\/wp\/v2\/media?parent=631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hpindiana.law\/business-blog\/wp-json\/wp\/v2\/categories?post=631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hpindiana.law\/business-blog\/wp-json\/wp\/v2\/tags?post=631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}