Won a judgment on a company LLC individual. After I won the judgment the LLC was forfieted for not paying Taxes. The state says now they are not covered by most LLC rules so that I may proceed at collection options. Would you try now getting a writ of execution for property? This guy is now opening a different LLC under a new name? Since the state shut him down and I have a judgment for 3K what are my options?
Sick a collections company and lose 40% of my judgment? Go to courthouse and send a writ to this guys home?
Interesting but confusing.
If, as you above write, your judgment debtor is an
individual , then the only significance of his being a member of an LLC, past, present or future, is the prospect of obtaining a charging order against his then current LLC membership interest.
You tell us that the state folks inform that due to the forfeiture the rules are out the window for the defunct LLC. And then ask if you should try “getting a writ of execution for property”.
But you don’t identify what property; the judgment debtor’s individually owned non-exempt property - OR assets that may be owned by an LLC of which your judgment debtor is a member.
In sum, your options are limited. Your judgment is against an individual. That individual’s non- exempt assets would be subject to execution in order to satisfying the judgment.
If he is a member of an active LLC, his interest in the entity could be made the subject of a charging order. But you could not execute against specific assets owned by the entity. That is, unless as flying Ron indicated he is using the active LLC as what is know as has alter ego, meaning doing business as a separate entity in name only (an extremely common practice). In which case if proven, you could proceed directly against the assets of the LLC.
But far too complicated and expensive just to try and collect $3K!
Turn you judgment over to a collector and hope for the best.
And next time you visit the site be sure to mention which of the 50 states is involved.
I was going to say “mention the state of the union”, but that is too depressing.