Full question:
I have a judgement for 2,000.00 against me. Its pushed me to file bankruptcy. I know they can freeze bank accounts and garnish my wages. My question is can they freeze my llc partnership I have with my brother and family? We just started this company. My name is on the account. However its my family's money not mine. Can they come after it?
- Category: Debts and Credit
- Date:
- State: Oregon
Answer:
If you created the LLC knowing about the judgment against you, creditors may challenge the LLC's assets as a fraudulent conveyance. This means they could argue that you transferred assets to the LLC to avoid paying debts. Under the Uniform Fraudulent Transfer Act, a transfer is considered fraudulent if:
- It was made with the intent to hinder, delay, or defraud creditors, or
- You did not receive a reasonably equivalent value in return for the transfer while being unable to pay your debts.
In some cases, creditors can hold you personally liable through an 'alter ego' theory, where the court disregards the LLC's separate identity if it finds that you and the LLC are essentially the same. This determination depends on the specific facts of your case.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.