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Thomas McJD
Thomas McJD, Attorney
Category: Legal
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I own a few shares of my brothers Limited Liability Corporation

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I own a few shares of my brother's Limited Liability Corporation which is a Texas company.
And there is a three year old judgment against me which is filed only in Colorado, but not filed in Texas...and I don't live in either of those states.
Is it possible for the judgment holder to go after my LLC shares in some way if he ever gets wind of the fact that I own them?

TMcJD :

Hi, I will be happy to assist you, and it is my goal to make you a very satisfied customer! This may take a few minutes, so thanks for your patience.

TMcJD :

Just so I'm clear, is it a corporation or a Limited Liability Company (you said it was a limited liability corporation - there's no such thing)?

Customer:

It is an LLC. I guess that must be a Limited Liability COMPANY.

TMcJD :

Yes, LLC stands for limited liability company. I just needed to be sure. Thanks for the information. The creditor would have to take its Colorado judgment and domesticate it in Texas first. Then, with that judgment it could seek a charging order against your LLC member interest. The only thing that allows the creditor to get is any amount of property distributed to you as a member. If not income or other property is distributed to you, then the creditor doesn't get anything. The charging order is its only remedy against you for debts owed by you personally (with regard to the LLC).

Customer:

That sounds good. Is there any way for the judgment guy to find out about the LLC if I don't tell him?

TMcJD :

Yes, he could request a hearing on assets. If he asked about any business interests you might have, you would be required to tell him you have a minority interest in the LLC. But other than that, there's really no way for him to find out.

TMcJD :

If you do not need additional assistance, I would be grateful if you could please leave me a positive rating for my help. I do not receive credit for my time without your positive rating and that is the sole means of compensation of JustAnswer experts. Thanks!

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