Can personal creditors garnish business accounts of an LLC? 6 Answers as of April 29, 2011

My girlfriend is busy so I'm doing research. She's had her business account for her LLC garnished as a result of a judgement on behalf of a personal credit card debt. Is this legal, and are there any methods to protect herself? She needs debt modification not bankruptcy.

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Law Office of Larry Webb
Law Office of Larry Webb | Larry Webb
She probably used her SSN for the checking account. Hard to prove its not her money.
Answer Applies to: California
Replied: 4/29/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
All assets are subject to garnishment. It wouldn't hurt to see a bankruptcy lawyer. She should explore all of her options, especially if the creditors are getting that aggressive.
Answer Applies to: California
Replied: 4/27/2011
Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
Personal creditors may be able to garnish the business accounts of an LLC if the LLC is solely owned by the Debtor. After a Judgment is not the best time to try to negotiate modification. If she is able to pay a lump sum towards the debts she may be able to settle for a lesser amount, however, with a Judgment the Creditors can collect for years.
Answer Applies to: New Hampshire
Replied: 4/27/2011
The Davies Law Firm, P.A.
The Davies Law Firm, P.A. | Robert F. Davies, Esq.
It sounds like she has a lot of problems. A lawyer can help her a great deal. Give me a call, make an appointment to come see me, and let's get moving on this for you. No charge for the telephone call and no charge for the first office visit.
Answer Applies to: New Jersey
Replied: 4/27/2011
Saedi Law Group
Saedi Law Group | Lorena Saedi
Depending on your state law, a creditor with a judgment against you might be able to place a lien on your property, freeze your bank accounts, and/or garnish your wages. If the judgment was ONLY against you're an individual then the LLC should not be garnished.

You may want to check the judgment and make sure that her name and the company's name are not both listed. If her LLC account has been frozen she will need to contact her bank to have that account "unfrozen". Many times banks will receive a judgment and simply put the person's name in to the system to freeze all accounts which their name appears.

This would include an LLC if they are a signer on the account.
Answer Applies to: Georgia
Replied: 4/27/2011
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