Vol. 72 No. 4 -- Fall 2017



Business & Corporate

Planning for the Unexpected: Drafting Operating Agreements to Protect LLC Members from Another Member’s Bankruptcy

Typically, the possibility that a member might end up in bankruptcy is an afterthought when parties form an LLC. However, a member’s bankruptcy can wreak surprising results for the LLC, including a Chapter 7 trustee taking over management of the LLC, selling the bankrupt member’s LLC interest to a third party, and seeking judicial dissolution of the LLC.