How Will My Credit Be Impacted by Foreclosed Rental Properties Under My LLC
My question involves a foreclosure in the State of: Alabama
I have an LLC that my rental properties are under. If these properties go into foreclosure, what will be the impact on my personal credit? Might my personal credit record be spared? Or will both my company and I be scarred with the foreclosure stamp?
Re: How Will My Credit Be Impacted by Foreclosed Rental Properties Under My LLC
If the person who set up the LLC knew what they were doing, and if you managed your LLC in a manner that maintained the separation between LLC assets and your personal assets, you should be able to avoid personal responsibility for the debts of the LLC if it fails. If you've commingled assets, withdrawn excessive amounts of money, personally guaranteed loans, committed any misconduct, set up the LLC incorrectly... then all bets are off.