Legal Question in Credit and Debt Law in New York

Collect on judgement

A NY L-T court just found in my favor on an eviction and a judgment against the 2 members of a NY LLC is impending.

One of the members likely has no assets. The other has an interest in a business (another NY LLC).

Can I attach, and either take ownership of his interest in the LLC, or garnish distributions from that LLC, or in some other way use his interest in the LLC to recoup some of my loss (some of the judgment awarded me)?

Thank you


Asked on 9/28/08, 1:14 pm

1 Answer from Attorneys
Jonathan Cohen

Re: Collect on judgement

An llc is an entity that protects the assets of the member and vice versa; the assets within the llc are protected from a creditor of one of the members. You have a judgment against the member but not the llc in other words. There are two upsides however; you can figure out whether the member is making a profit from his llc because you can find his tax return (pass thru entity shows such profit) and you may be able to attach such profit to the judgment. Also if the identity of the member and the llc are the same you may be able to prove that in court and then attach the assets of the llc to the judgment

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Answered on 9/28/08, 6:29 pm


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