Phoenix, AZ asked in Bankruptcy, Civil Litigation and Collections for Arizona

Q: Can you change a sole proprietor business into an LLC in order to protect your personal assets after a judgment?

I won a judgment against a Defendant and she immediately changed her sole proprietor business into an LLC in order to transferred all of her assets there. This has been recently discovered and now explains why I have not been able to recover judgment. It was thought that once you've been sued, it would be too late to form an LLC to protect your personal assets. Doesnt an LLC need to be formed in advance? How do you address this matter in Superior Court with the judge? Is there something I can file to address this issue or will I have to file a formal complaint? I don't have any more finances to hire an attorney. Please help with any information you can share. Merry Christmas!

1 Lawyer Answer
Timothy Denison
Timothy Denison
  • Bankruptcy Lawyer
  • Louisville, KY

A: The transfers you described are post judgment snd should be easily set aside as fraudulent transfers. You can ask the court in which you obtained judgment to set them aside.

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