QUESTION
How long does a judgement against me from a local credit union in 2009 stay active?
Asked on Oct 17th, 2013 on Bankruptcy - Michigan
More details to this question:
The judgement is against me and not my business. Can they still attach the funds from my business? If I change my business from a sole proprietor to an L.L.C., will I be protected from the credit union taking money out of my business account?
2 ANSWERS
Debt Collection Attorney serving Chicago, IL
Partner at
Edelman, Combs, Latturner & Goodwin, LLC
2 Awards
A judgment is good for at least 20 years (enforcement proceedings commenced prior to the 20 years may continue past it). It must be revived every 7 years. A sole proprietorship is just you, so funds in an account in the name of a business that is a sole proprietorship can be seized pursuant to a judgment against you. If you create a corporation or LLC, the account of the business or LLC is not subject to being seized pursuant to a judgment against you, but your ownership interest in the entity is. A court may enter a "charging order" requiring payment of the income received by the entity to the judgment creditor.
Answered on Oct 18th, 2013 at 12:07 PM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
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10 years in Michigan, they can presently take from sole proprietor accounts, and would not be able to do an LLC (with exceptions) on this judgment.
Answered on Oct 18th, 2013 at 12:04 PM