Square Pegs in Round Holes: How Partnership and LLC Interests Are Treated in Bankruptcy

The unique nature of partnerships and limited liability companies causes great uncertainty when a debtor owns a part of them. The Bankruptcy Code has almost nothing explicitly to say about these entities, leaving practitioners and courts to work out the details. This panel covers the fundamental nature of these entities, how that nature affects what a trustee or debtor can do with them, and problems that arise for the entity when a part owner files bankruptcy.