{"id":661,"date":"2016-03-02T03:50:44","date_gmt":"2016-03-02T08:50:44","guid":{"rendered":"http:\/\/www.michaelsmithlaw.com\/blog\/?p=661"},"modified":"2023-11-28T13:37:30","modified_gmt":"2023-11-28T18:37:30","slug":"llc-interests-members-bankuptcy-part-vii","status":"publish","type":"post","link":"https:\/\/www.hpindiana.law\/business-blog\/llc-interests-members-bankuptcy-part-vii\/","title":{"rendered":"LLC Interests and a Member’s Bankuptcy, Part VII"},"content":{"rendered":"

[The last in a seve-part series. The other articles in the\u00a0series are here: \u00a0Part I<\/a>,\u00a0Part II<\/a>, Part III<\/a>,\u00a0Part IV<\/a>, Part V<\/a>, Part VI.<\/a>]<\/p>\n

With the bankruptcy courts\u2019 inconsistent treatment of a debtor\u2019s LLC membership rights, how should someone structure a limited liability company to maximize the possibility that, should the member file for bankruptcy protection, the member\u2019s noneconomic rights will not end up in the hands of a bankruptcy trustee and, possibly, a subsequent acquirer?\u00a0 With the current state of case law, there seems to be no sure-fire way, but the following factors may help.\u00a0 Please recognize, however, that other, these factors may run counter to other goals and the decision to include them should be made cautiously with the advice of counsel.<\/p>\n