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CalAttorney2
CalAttorney2, Attorney
Category: Legal
Satisfied Customers: 10238
Experience:  Civil litigation attorney for individuals and businesses.
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I have an aircraft sales company in Spartanburg. I sold an

Customer Question

I have an aircraft sales company in Spartanburg. I sold an airplane a couple of years ago and the buyer has sued me and gotten a judgement against my S corporation which has been closed down, and me personally. I did not fight it as it was out of state and I thought it was B.S. Being in the aircraft sales business I kept most things out of my name. Now, Wells Fargo has put a hold on my joint account with my wife so we can't touch the funds. The guy even has tried to get my wife's account frozen in another bank, claiming she is my spouse. This all started with me as the president of the corporation, and her having nothing to do with it.
I started an LLC after all this his was happening and he is trying to freeze that account.
I started the first Corporation years ago with the idea they couldn't touch my assets, and later trying to insure my wife's assets weren't in touch if there was a lawsuit.
They have a hold on our joint personal account and I'm waiting to hear on the new LLC I formed, and to see if they can put a hold on my wife's personal account.
Any way they can put a hold on my wife's account or my newly formed LLC?
Submitted: 1 year ago.
Category: Legal
Expert:  CalAttorney2 replied 1 year ago.

Dear Customer,

I am sorry to learn about this situation. Unfortunately the proper time to attack this was when the creditor named you as a defendant, unless you actually committed some tort in your personal/individual capacity you would not be liable for the actions of your corporation, but if you don't appear in court and defend yourself, there is little that can be done - if the judgment was entered years ago, that would simply be too late to do anything about at this point.

They can pursue the money in your wife's account using the "Uniform Fraudulent Transfer Act" - they must show that you moved money that you had in your account (or in your corporate account) to your wife without receiving anything in exchange. They are only entitled to recover the amount that was moved there, nothing more. However, UFTA actions must be brought relatively quickly, given the information you posted, I don't believe that your creditor is going to have much luck, but I would consult with a local attorney to review all of the documents in your matter more thoroughly.

They can pursue actual ownership of your new LLC, and everything that it owns if the LLC belongs to you. As the judgment debtor, if you own the LLC, that is an asset that your creditor can pursue and levy against, so if you are the owner of your new LLC, that new business is at risk of being leveraged by the creditor.

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