Will an llc protect my real estate from a judgement given by a civil case?

UPDATED: Oct 1, 2022

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Will an llc protect my real estate from a judgement given by a civil case?

I believe I will be a defendant in a civil case and want to protect my real
estate asap Can an llc protect my property if I loose and a judgement is place
against me

Asked on April 13, 2019 under Real Estate Law, Missouri


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

No, in this case it will not, for one or all of the following reasons:
1) If you transfer property not for fair market value (i.e. not selling it for what is worth) when you believe you will be sued, that is considered a fraudulent transfer, made to hide assets from a potential creditor (the person suing you, who, if he or she wins, will be a "judgment creditor"). That means that the transaction can be voided or undone and the creditor can get the property.
2) If it is a one member (one owner: you) LLC which does not transact legitimate business, then they could likely "pierce the corporate veil" on the grounds that the LLC is just a shell designed to defraud creditors, and not an actual business.
3) If you are the sole owner, then the LLC itself is an asset of yours and they can potentially get the whole LLC and everything it owns anyway.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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