If a client has an LLC that is a single member and the single member LLC has $95k in unsecured debt, should the LLC file bankruptcy or the owner of the LLC? There are no personal guarantees on the $95k, but there are no assets. Also will bankruptcy terminate a lease?

If the LLC has unsecured debt, then the LLC should be able to dissolve and fold. Once folded, the LLC shield should be able to protect the LLC member from creditors reaching in. I dont think the LLC or the member need to file bankruptcy unless the member has creditor issues outside the LLC.

Since Limited Liability Corporations (LLC) are a relatively new type of business entity, LLC owners have some difficulty finding out how courts will treat their bankruptcy LLC cases. Will the judge treat them like an LLC, as a corporation or as a partnership What will happen during a bankruptcy LLC when the company has only one owner. Currently, there is no code or law that directly addresses bankruptcy LLC proceedings. In order to us to proceeds our bankruptcy LLC we must find a very good bankruptcy attorney that willing to help us in this kind of problem...that willing to give their advices and their moral support to solve this problem.