Ask Experts Questions for FREE Help !
Ask
    frankjohnson22's Avatar
    frankjohnson22 Posts: 1, Reputation: 1
    New Member
     
    #1

    Jan 6, 2009, 07:05 PM
    How do personal judgements affect your llc's?
    If I have a personal judgement on me but still own llc's, can they collect or interfere with my llc's?

    Can they garnish those wages?

    Does it matter if I am 100% member or have other members?
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
    Uber Member
     
    #2

    Jan 8, 2009, 04:59 AM
    Hello frank:

    They can seize your stock and garnish your wages. They cannot seize the llc bank account, but they can seize your private ones.

    It doesn't matter how many or whether there ARE any other stockholders or employees of THAT llc.

    excon
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
    Expert
     
    #3

    Jan 16, 2009, 11:30 AM
    Quote Originally Posted by excon View Post
    Hello frank:

    They can seize your stock and garnish your wages. They cannot seize the llc bank account, but they can seize your private ones.
    ...

    I beg to differ.

    1. Your ownership of an LLC is normally not evidenced by "stock". That would be for a corporation.
    2. You own your interest in the LLC. They can seize all non-exempt assets, including your interest in the LLC (and, in turn) the bank accounts which belong to the LLC. They might have to jump through certain hoops, but ultiimately they could get the money in that bank account.

    Limited liability is like a ratchet or one-way street. You are protected from liability for debts of the LLC, but the LLC is not protected from liability for your personal debts.
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
    Uber Member
     
    #4

    Jan 16, 2009, 02:42 PM
    Quote Originally Posted by AK lawyer View Post
    I beg to differ.

    1. Your ownership of an LLC is normally not evidenced by "stock". That would be for a corporation.
    Hello lawyer:

    The distinction between ownership by "stock", and just outright ownership is a distinction without a difference. The bottom line is, they can seize the LLC because it's an asset owned by judgment debtor.

    Going through the back door that way, will allow them to seize the LLC bank accounts.

    excon

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Describe two factors that affect labor supply and two factors that affect labor deman [ 7 Answers ]

Describe two factors that affect labor supply and two factors that affect labor demand. Using economic principles, describe how changes in the labor market have affected you or someone you know.

Will personal Chap 13 bankruptcy affect my sub-S corporation in any way? [ 2 Answers ]

I am a part-owner in a sub-S corporation and may have to file C13 bankruptcy protection. I will definitely do anything I can to avoid C7 as I make okay money and I owe the debts I have w/out dispute. I do not want them voided out on the rest of us. Anyway, it is my understanding that under C7,...

How does my bankruptcy affect personal loans from private lenders? [ 3 Answers ]

We have experienced financial devastation in the last year, and after consulting a debt counselor and a bankruptcy attorney, it has become clear that our only option is bankruptcy. We are now in the process with the attorney of determining which chapter is the best option for us. In the...


View more questions Search