Are my personal assets still protected?

Asked almost 5 years ago - Inkster, MI

I have a rental property. I filed the articles of incorporation for an LLC to protect my personal assets. My renters are not paying. I plan on refusing to pay the property taxes, and letting the government take the house. Can the government also pursue my personal assets?

Attorney answers (3)

  1. Steven J. Fromm

    Contributor Level 20

    Answered . If the debt is owed by the LLC and you did not sign a promissory note or mortgage individually then it would appear that you have no personal liability.

    Hope this helps.

    LEGAL DISCLAIMER
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    By using this site you understand and agree that there is no attorney client relationship or confidentiality between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed attorney that practices in the subject area in your jurisdiction and with whom you have an attorney client relationship. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question or omitted from the question.
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  2. Henry Daniel Lively

    Contributor Level 20

    Answered . Normally, the property taxes become a lien against the property and do not create personal liability. Check with a real estate attorney in your area to make sure this is the case.

    Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.

  3. Janet Lee Brewer

    Pro

    Contributor Level 17

    Answered . You may be putting your personal credit rating at risk by doing this. As Mr. Fromm indicated, if there's a mortgage on the property, you are probably personally liable for the loan.

    Before you do something foolish, talk to an attorney about your options.

    The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.

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