Can an LLC File Bankruptcy in Georgia?

Yes. A Georgia LLC is a separate legal entity under O.C.G.A. § 14-11-1 and may file for bankruptcy protection in federal court under 11 U.S.C. The LLC files as a business debtor in the U.S. Bankruptcy Court for the Northern, Middle, or Southern District of Georgia. Federal bankruptcy law governs the filing, not Georgia state law.

Filing Process

Your Georgia LLC files bankruptcy as a distinct entity, independent of members' personal finances. The LLC must file in the appropriate federal district based on its principal place of business. You'll need the LLC's EIN, Articles of Organization, and current financial records.

Chapter 7 (liquidation) dissolves the LLC and sells assets to pay creditors. Chapter 11 (reorganization) allows the LLC to restructure debt and continue operating. Chapter 13 does not apply to LLCs—only individuals use it.

Member Liability Protection

Filing bankruptcy does not automatically expose members to personal liability. Georgia's LLC Act provides charging order protection under O.C.G.A. § 14-11-504, which shields members' personal assets from LLC creditors in most cases. Members' liability remains limited to their capital contributions unless they personally guaranteed LLC debts or engaged in fraud.

Operating Agreement Impact

If the LLC has a written operating agreement under O.C.G.A. Title 14, Chapter 11, its terms may address dissolution or financial distress. However, federal bankruptcy law supersedes state law and operating agreement provisions during bankruptcy proceedings. The bankruptcy trustee controls asset distribution according to the bankruptcy code's priority scheme.

Next Steps

Consult a bankruptcy attorney licensed in Georgia and admitted to federal bankruptcy court.
Gather the LLC's Articles of Organization, EIN, and recent financial statements.
Evaluate Chapter 7 (liquidation) vs. Chapter 11 (reorganization) based on business viability and debt structure.
File the petition in the appropriate U.S. Bankruptcy Court district.
Attend the required creditors' meeting (341 meeting) within 21–35 days of filing.

This is general information, not legal advice. Consult a Georgia-licensed bankruptcy attorney before filing.