Q: If someone owes me money; we made a contract; the money is from an LLC; now they are saying they are hard up for money;
If someone owes me money; we made a contract; the money is from an LLC; now they are saying they are hard up for money; but they have another 11 LLC's in their name. The question is if they go bankrupt on the LLC where the money was loaned from, can I sue on the other LLC's for my money owed?
A: That's not an easy question to answer, but the short answer is "probably not." The exception might be if you were able to show that the LLCs were set up as shams to perpetuate such frauds against lenders. The loan to the LLC did not include a personal guarantee? Check the signature line; if the person failed to write a designation (like "member" or something else related to the LLC) they may have inadvertently signed in their individual (personal) capacity. Bring the documentation to a local attorney for an in-person consultation to ascertain your options.
A: The only parties that may be sued are the llc's and persons who signed the contract, cosigned, or guaranteed .
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