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    imaginetht's Avatar
    imaginetht Posts: 1, Reputation: 1
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    #1

    Oct 9, 2013, 12:50 PM
    Can a business checking account for a LLC be garnished or frozen?
    I own an LLC. A collector for the Department of Education is threatening to sue me and garnish my bank accounts for payment.

    Isn't that one of the purposes of an LLC? The inability to attach personal assets to business assets?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Oct 9, 2013, 03:50 PM
    Yes and no. is the debt purely personal ?

    If so, if the LLC checking is done properly, then it should be protected

    BUT>>>
    Do you have personal funds that go directly into it ?
    Do you use it as a personal checking account paying for personal items ?

    Often we set up the paper work but fail to keep the money separate in day to day activities.

    But if all things correct, no they can not get the money

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