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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118076
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I am trying to find the best way possible to do this. Let me

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I am trying to find the best way possible to do this. Let me explain the situation in bullet points and that exact timeline.

- I had a retail business in california.
- Got an investor.
- I was in civil lawsuit in california by that investor after business closed.
- I moved to Texas.
- After 2 years of civil lawsuit. I decided to declare bankruptcy.
- The guy went after me in adversary proceeding in Texas.
- Low chance that I will lose in trial (which this is going)

My question is. I have a little business on the side and I am in bankruptcy and adversary proceeding. How can I create a company that would be shielded from the case and loss in lawsuit/bankruptcy. Basically I would like to create a corporation that could never be taken away from me and receive salary from it. What is the proper way of doing it. It would be in Texas.
Thank you for your question. I look forward to working with you to provide you the information you are seeking.

The problem is that once a suit is filed, the Fraudulent Transfer Act prevents someone from hiding assets from a judgment creditor. What many people do in these cases is form an offshore trust and then an offshore LLC in countries like Belize, Seychelles or Panama and then use that LLC to form an LLC in the US (Texas in your case). This protects anyone from finding who even owns the LLC because those countries will not release any information on the owners of the LLC and certainly not the trust. There are many services at that you can engage to form your offshore trust and LLC and once you do so, then you can form your Texas LLC with the offshore LLC as the owner of the Texas LLC.

As far as you receiving a salary from the LLC, the problem is once that salary comes out of the LLC, it could be fair game for them to try to seize, even though under Texas law they cannot garnish wages. That is a bit more difficult to protect unless the LLC pays all of your regular expenses such as housing.

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Customer: replied 3 years ago.

This would not be for fraudulent purposes in any way. It is something that I recently started. So you are saying there is no possible way to do this legally here that is protected in any way. They can always take away that form you even if you start it after you have been sued and after you declared bankruptcy.

Thank you for your response.

Legally if you are under bankruptcy, any income or proceeds you make or assets (a company is an asset) have to be declared. You would have to wait for bankruptcy to be closed for you to start one locally any other way to have it not considered in the bankruptcy. That is one reason why people use the offshore method.
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