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Are my personal assets still protected?

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. 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.

    Mr. Fromm is licensed to practice law in PA. The response herein is not legal advice and does not create an attorney/ client relationship. The response is only in the form of legal education and is intended to only provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply or make such reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received.
    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.
    Circular 230 Disclaimer - Any information in this comment may not be used to eliminate or reduce penalties by the IRS or any other governmental agency.

  2. 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. 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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