Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
Hello. Thank you for using JustAnswer.
Under very limited circumstances, a court order can be obtained under Utah law that can force a client to pay a third-party creditor.
It is very rare.
However, Utah law does provide for the garnishment of income of a business entity.
And, in most cases, such as in the McDonald's case, a bank garnishment is used.
How is that different? Do you mean bank account income?
It can occur in two ways.
First, the members of the LLC are served with a garnishment order mandating that any "draws" taken by the specified member be paid over to the garnishor.
Second, a bank levy/garnishment where funds are taken from the bank account.
The bank levy is far more common.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).