I have a judgement against me personally, can the plaintiff ask the judge to do a turn over order on my shares I have in an LLC

Asked about 1 year ago - Simi Valley, CA

I have for my % of ownership until the judgement is paid in full? They subpoena my LLC bank acct and discovered I pay personal items from the acct so it entitles them to pierce the veil. Is there any truth to this?

Attorney answers (4)

  1. Charles Richard Perry

    Pro

    Contributor Level 16

    5

    Lawyers agree

    Answered . Yes, you can be required to turn over your interest in the LLC. And the turnover is permanent -- you don't the LLC back once the judgment is paid.

    Yes, paying personal items from the LLC can be considered evidence that the corporate veil should be pierced.

  2. Abraham P Mathew

    Contributor Level 13

    4

    Lawyers agree

    Answered . Yes. If you own a membership interest in the LLC, your judgment creditor
    can take steps to have you turn over the interest.



    ...................................................

    Abraham Mathew

    Mathew & George

    801 S. Grand Ave., Suite 1610

    Los Angeles, CA 90017

    Tel: 310 478 4349

    Fax: 310 478 9580

    email: abraham@mathewandgeorge.com

  3. Michael Charles Doland

    Contributor Level 20

    2

    Lawyers agree

    Answered . If a turnover order is issued, you don't get your interest back when the judgment is paid.
    Comingling coporate and personal assets and obligations is one ground for "piercing the corporate veil".

    The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may... more
  4. Gary Ralph Ilmanen

    Contributor Level 19

    1

    Lawyer agrees

    Answered . They can get a Charging Order that instructs the LLC to pay disbursements to them instead of to you.

    I am an Attorney-at-Law, licensed to practice law only in the state of California. Unless we have both signed a... more

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