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MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
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I have a company that was sued, along with myself personally

Customer Question

I have a company that was sued, along with myself personally and a default judgement was issued because I didn't respond.

I now have another company with partners, and have a bank account for that company with myself, and someone else (partner) on the account which has money in it.

Will the company that sued my other company, and myself, and got a default judgement , be allowed to take the funds out of my new companies bank account which I am a partner of?
Submitted: 5 years ago.
Category: Business Law
Expert:  MShore Law replied 5 years ago.
Thank you for the post, I am happy to assist you by answering your questions. Is your new company established as a Inc., LLC, LLP, LLLP, PC or otherwise as a separate entity from yourself recognized by the state?
Customer: replied 5 years ago.
The one that was sued along with me personally a couple years ago was a LLC, and my new company is also a LLC with 2 members.
Expert:  MShore Law replied 5 years ago.
Thank you, XXXXX XXXXX the assets held in the name of the new LLC are not subject to judgment creditor action (assuming that the new LLC is a legitimate business and not just a shell to house the assets of the old LLC).

Please let me know if you need additional guidance.
MShore Law and other Business Law Specialists are ready to help you
Customer: replied 5 years ago.
Thank you. One more concern. I have not been keeping any funds in any personal accounts of mine for fear of it being taken, so is there really anything I could do to keep my personal funds safe (my profit from new company) such as opening a trust, or offshore company. (You don't need to go into detail, I'd just like to know if anything of this nature would keep them safe). I thought about filing for bankruptcy, but I'm making money from new company, and thought about trying to contact them to see if they'd reverse the default judgement for a substantially lower settlement. Just wondering if I will ever be able to have assets or keep funds in a checking account.
Customer: replied 5 years ago.
Thank you. One more concern. I have not been keeping any funds in any personal accounts of mine for fear of it being taken, so is there really anything I could do to keep my personal funds safe (my profit from new company) such as opening a trust, or offshore company. (You don't need to go into detail, I'd just like to know if anything of this nature would keep them safe). I thought about filing for bankruptcy, but I'm making money from new company, and thought about trying to contact them to see if they'd reverse the default judgement for a substantially lower settlement. Just wondering if I will ever be able to have assets or keep funds in a checking account.
Expert:  MShore Law replied 5 years ago.
You could place them in a trust.
Customer: replied 5 years ago.
So I can put my money in a trust, and also put vehicles in it? The trust would need to be someone else, correct? Could it be my business partner for my new business? That's all.
Expert:  MShore Law replied 5 years ago.
Correct, and yes (to all).