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Riverside Court Attorney :: An agreement may be tweaked to provide for allocation and distribution. It can specify when and how much distributions thereby depriving a new member from demanding an allocation or distribution. Another way to limit the new members interest in pursuing the interest is the capital contribution requirement. Typically a member is not obligated to contribute money or property or make a capital contribution to LLC unless the member agrees to do so in a written document signed by the member. This is tremendously important for estate planning purposes. Can you imagine a creditor getting a court ordered liquidation of a debtor members membership interest and trying to sell the interest when it requires the member pay $5,000, $10,000 or more in capital contributions? The membership interest will be virtually worthless to a creditor.
Relief From Stay Motions - The automatic stay is provided for in 11 U.S.C section 362. Its effect is to impose a wide-ranging prohibition on all activity outside the bankruptcy forum to collect prepetition debt from the debtor or to assert or enforce claims against the debtor’s prepetition property or estate property. The stay of a particular activity may be lifted by the court following application for relief from stay under 11 U.S.C section 362(d).
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