I am involved in a 3 member LLC in Ohio. When the LLC was created in 2008, each member owns 33.333% of the company. Currently one of the members owes the company about $1,600 for product that they purchased for a second company that they own. In addition there is more product that she has sold that our company has not billed them yet. This partner has recently indicated that they do not have the money to pay this receivable and that we will have to stand in line with other creditors. The $1,600 and the unbilled product will be more than this owner's equity and note payable. Can the amount owed by this partner be applied against the equity account and the balance written off?