In re Albright
Bankruptcy Court for the District of Colorado
291 B.R. 538 (2003)
Ashley Albright (defendant), sole member and manager of Western Blue Sky, LLC, which owned Colorado real property, filed for Chapter 7 bankruptcy; the Trustee (plaintiff) sought authority to liquidate Western's property, arguing that as sole member Albright's entire membership interest transferred to the bankruptcy estate upon filing, giving the Trustee full management control including the power to force a sale, while Albright argued the Trustee was entitled only to a charging order against distributions, not management control.
Whether, when there is only one owner of a limited liability company, a bankruptcy trustee can become a managing member of the company upon the owner's bankruptcy filing.