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I have a judgment against me personally for $50,000.00, can the creditor come after my LLC if the judgement against only me.

Beverly Hills, CA |

I am a managing member of my LLC and the creditor wants to attach my income I receive from the LLC to satisfy the judgement they have against me personally. Can they do this?

Attorney Answers 4


  1. If you take distributions from the LLC, the creditor can attach that money, even though they can't attach money paid to the LLC. But you have a bigger problem...unless the LLC is an exempt asset under California exemption laws, why wouldn't the creditor just take over ownership of your shares of the LLC? Hope this perspective helps!


  2. Yes, the creditor may garnish you wages, if that is what you are talking about. He also may attach your interest in the Llc., if you have one. He may not go after the assets of the corporation directly, however, without first piercing the corporate veil. He also can attach community property but not your spouse's personal property.

    My recommendation: call the creditor and see if you can work out a settlement. This can take the form of a payment plan or a substantially discounted lump sum payment.

    Good luck.


  3. You should also at least consider bankruptcy. I recommend that you obtain a consultation or two to see what your options are and what the risks involved are.

    Be sure to designate "best answer." If you live in S. California, you may call my firm for a consultation 818-507-6000. The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here. Please visit my web site: www.tilemlaw.com for more information about my services.


  4. See excellent prior answer from an avvo attorney on the "charging order" scenario that encompasses your question about getting at the LLC.

    http://www.avvo.com/legal-guides/ugc/asset-protection-planning-transmutation-by-utilization-of-charging-order-business-entities-

    My answer is not intended to be giving legal advice and this topic can be a complex area where the advice of a licensed attorney in your State should be obtained.

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