Legal Question in Credit and Debt Law in Nevada

Hi thank you for taking time to answer my question

I am going thru foreclosure on my home which also has a second and have other creditors looking to collect. My question is sometime in the future I want to purchase some raw land but I want to protect that purchase from my creditors how can I do this can I form an LLC and protect that or could my creditors file a claim against my LLC. thank you for your time Dennis Owen


Asked on 8/17/10, 1:09 pm

1 Answer from Attorneys
Rick Williams Law Offices of Frederick D. (Rick) Williams, Chtd.

Dennis:

There are some strategies to avoid placing your new purchase at risk, but placing it in the name of an LLC won't really provide much shelter for you. If a personal judgment is obtained against you, the creditor can execute it against any assets in your name. Although the land would not be "in your name," the ownership of the company that owns it would be, so they could still get to it if they are so motivated. What they can obtain against your member share of the LLC is called a "charging order," and does provide some protection for you that may be worth discussing. We form Nevada business entities for a variety of reasons in this firm, including to protect assets and gain tax advantages. Perhaps we can help you.

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Answered on 8/23/10, 5:45 pm


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