Legal Question in Credit and Debt Law in Maryland

Hi. Without knowing the specific facts of your situation I hope the following general information points you in the right direction. Generally it is illegal / problematic to transfer assets to avoid paying a judgment creditor. Your question does not specifically indicate whether you intend to transfer funds to an entity or simply do business through an entity in the future.

Opening a business as a LLC or corporation may be positive and is a common way to structure a business. It will not stop all garnishment but will limit access to entity assets. If you paid yourself as an employee the creditor can force wage garnishment the same way it could with any employer.

You may want to consult an attorney about negotiating a reduction or repayment of the debt in appropriate circumstances. I'm assuming from your garnishment question that this has already been litigated and reduced to judgment. If not, you may have more options in dealing with threatened suit. Your overall financial picture and the dollar amount involved may impact what options would best address the problem.