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TraceyJ125, Expert
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TraceyJ125, Expert
Okay thank you. Am I right you want to know if the assets of the LLC can be attached to satisfy a judgment entered against in your personal capacity only? Are the owners of the LLC the very same owners against whom the judgment was entered?
TraceyJ125, Expert
They would have to show there is no separation between your funds and the LLC's funds--that they are comingled. OR that if they can show you attempted to hide funds in the LLC that would a reason to "pierce the corporate veil" which is to set aside the legal separation created when that entity was formed and attach those assets. So please be careful. Outside those showings, those assets do not belong to you, but to the LLC and can not normally be attached to satisfy a judgment in your names only. Please let me know if you have other questions about this.
TraceyJ125, Expert
No, it would be harder to pierce the corporate veil. But in general what I said above still applies leading with the premise that those assets do not belong to an individual but the LLC. But I do think it decreases their chances of being able to reach those assets. Of course if wasn't in place prior to judgment, it can be viewed as you all deliberately protecting the assets from the judgment and will be disregarded. Please let me know if you have other questions about this.
TraceyJ125, Expert
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