Generally, when a person is alleged to owe a business debt, few protections, if any, apply to debt collection attempts. If one believes that an alleged account balance is wrong, it should be disputed by Cert/RRR mail. However, with 33% penalty interest rates, it surprises me none when a debt doubles or triples over just the course of a few years. That's what happens when a credit card account isn't paid.
Generally, placing, hiding, concealing, or secreting assets for the purposes of evading or impairing a creditor's rights can give rise to civil and/or criminal liability sometimes known as "fraudulent conveyances." Moreover, just because an asset is in a LLC or Inc does not mean the credit cannot get the asset. If the creditor can seize the personally-owned shares or membership units in a business, then the creditor can effectively control the assets owned by the business. Any attempt to protect assets should only be attempted after consulting with an attorney.
In the meantime, it's generally good news that a junk debt buyer allegedly owns a debt because it's more inclined to more steeply discount the debt in exchange for settlement in full than an original creditor. An attorney can assist with settling a debt on the most advantageous terms possible.
Disclaimer: Nothing stated herein is legal advice. For legal advice, consult an attorney; I am not your attorney at this time. This response may constitute ATTORNEY ADVERTISING which has not been approved by the Supreme Courts of New Jersey or Pennsylvania or the Court of Appeals of Maryland. I am a federally-designated “debt relief agency” that provides, where appropriate, relief under the U.S. Bankruptcy Code.
Are you sure Northland "owns" it? I've seen them as a debt collector only. Look on the letter. They will say who the owner is or the original lender was.
Joe gives some good advice. Is this a card you guranteed?
If Citibank's alleged debt against you is twice the amount that you originally are obligated to pay, of course you should dispute it. Of note, If you and your wife shared in this debt, both of you should be responsible for it as well.
In reference to moving this property to a limited liability company, it can be seen as a fraudulent conveyance, and is frowned upon by the Courts because you are attempting to avoid a judgment.
Please consult an attorney to discuss further.
The information is for general information purposes only. Nothing from this comment should be taken as legal advice for any individual case or situation. This information does not create and does not constitute an attorney-client relationship or a prospective attorney relationship.