What to do if I am trying to collect a debt against an LLC that is closed and located in another state?

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What to do if I am trying to collect a debt against an LLC that is closed and located in another state?

Is it possible to file a lien on some property which used to belong to the business, and which I know the location of (because my company was contracted to haul it as freight)?

Asked on July 11, 2014 under Bankruptcy Law, Illinois

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

You could *only* try to proceed against property formerly owned by the closed LLC IF you could show that the only reason it was transfered (sold, gifted, whatever) to another person was in order to hide assets from creditors. On the other hand, if the transfer of ownership (e.g. sale) was a legimtate transaction in the course of business, you'd have no recourse against property now owned by another.

More generally: if the LLC is now closed, you are very unlikely to collect anything--there is no one to collect from. The owners and officers of the LLC are not personally liable for debts of their LLC (unless and only to the extent they may have personally guaranteed the debt), and the "person" who owed you the money--the LLC--no longer exists.


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