[WSBARP] Execution on judgment

[Rob Rowley]

Any self-settled asset protection LLC/Trust is subject to successful
creditor attack.



See In re Huber

http://courtweb.pamd.uscourts.gov/courtwebsearch/wawb/pxQPkhFD0j.pdf



*Robert R. Rowley* | Attorney at Law

7 S. Howard St, Suite 218

Spokane, WA  99201

Telephone: (509) 252-5074

Mobile: (509) 994-1143

Facsimile: (509) 928-3084

Email: rob at rowleylegal.com



*From:* wsbarp-bounces at lists.wsbarppt.com [mailto:
wsbarp-bounces at lists.wsbarppt.com] *On Behalf Of *Eric Nelsen
*Sent:* Tuesday, November 07, 2017 8:49 AM
*To:* WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
*Subject:* Re: [WSBARP] Execution on judgment



Wait, maybe I am all wet, but as I read that statute, it *is* possible to
foreclose on the member's transferable interest in the LLC, per RCW
25.15.256(2)
<http://app.leg.wa.gov/RCW/default.aspx?cite=25.15&full=true#25.15.256>.
Subsection 1 allows a charging order akin to a garnishment on the member's
interest, and subsection 2 allows foreclosure and sale/seizure of the
interest itself. Yes?



Admittedly the foreclosure only takes the debtor's "transferable interest,"
but if it's a single member LLC, if I represented a creditor I would
foreclose on the 100% transferable interest. Then the creditor would be a
100% transferee, there would be no existing "members" with voting rights,
and therefore the creditor has the right to vote to be admitted as a member
within 90 days after the transfer, per RCW 25.15.265(4)
<http://app.leg.wa.gov/RCW/default.aspx?cite=25.15&full=true#25.15.265>.
The judgment creditor would thus effectively seize ownership and control of
the LLC and its assets.



Do you think that would work?



Sincerely,



Eric



Eric C. Nelsen

SAYRE LAW OFFICES, PLLC

1417 31st Ave South

Seattle WA  98144-3909

phone 206-625-0092

fax 206-625-9040



*From:* wsbarp-bounces at lists.wsbarppt.com [
mailto:wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com>]
*On Behalf Of *Robert Pampell
*Sent:* Monday, November 06, 2017 10:43 PM
*To:* 'WSBA Real Property Listserv'
*Subject:* Re: [WSBARP] Execution on judgement



No.  See RCW Sec. 25.15.256, esp. subsection (5).  Known as “charging order
exclusivity,” this subsection was added in the amendments effective 1/1/16.



While you are at it, your client should be advised, as should all LLC
clients should be, that single member LLCs “make lousy asset protection
vehicles”, to quote a prominent national creditor rights/asset protection
expert.  He was addressing the typical veil-piercing and alter ego flavor
of asset protection, rather than the so-called “reverse veil-piercing”
variety addressed by the section cited above.





[image: 21 Law logo - color (no tag) FB size for letterhead.jpg]



Robert Pampell, Attorney

21st Century Law Office (r)

19125 Northcreek Parkway, Suite 120

Bothell, WA 98011

voice: 425-329-2629
fax: 877-640-6403
cell: 425-501-4784
email: rpampell at swcp.com

http://www.linkedin.com/in/robertpampell

www.21stLawOffice.com <http://www.21stlawoffice.com/>







*From:* wsbarp-bounces at lists.wsbarppt.com [
mailto:wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com>]
*On Behalf Of *Craig Gourley
*Sent:* Monday, November 06, 2017 3:41 PM
*To:* wsbarp at lists.wsbarppt.com
*Subject:* [WSBARP] Execution on judgement



Listmates,

Client has a judgment against him personally and wants to acquire real
property in a single member LLC.  I know the judgment does not attach
directly to the real property.  My recollection is that the creditor can
obtain a charging order against the LLC and any distributions to the member
would go to the judgment creditor.  Can the judgment creditor execute
against the personal property interest of the “ membership” thereby taking
ownership of the LLC and the property it contains?   Thanks in advance for
your insight.



*Gourley Law Group*

*Snohomish Escrow*

*The Exchange Connection*



1002 10th Street / PO Box 1091

Snohomish, WA 98291



360.568.5065

360.568.8092  fax

*Craig at glgmail.com <Craig at glgmail.com>*
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