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--></style></head><body lang="EN-US" link="#0563C1" vlink="#954F72"><div class="WordSection1"><p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif;color:#44546a">Any self-settled asset protection LLC/Trust is subject to successful creditor attack.</span></p><p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif;color:#44546a"> </span></p><p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif;color:#44546a">See In re Huber</span></p><p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif;color:#44546a"><a href="http://courtweb.pamd.uscourts.gov/courtwebsearch/wawb/pxQPkhFD0j.pdf">http://courtweb.pamd.uscourts.gov/courtwebsearch/wawb/pxQPkhFD0j.pdf</a></span></p><p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif;color:#44546a"> </span></p><div><p class="MsoNormal" style="line-height:12.0pt"><b><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:#44546a">Robert R. Rowley</span></b><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:#44546a"> | Attorney at Law</span><span style="color:#44546a"></span></p><p class="MsoNormal" style="line-height:12.0pt"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:#44546a">7 S. Howard St, Suite 218</span><span style="color:#44546a"></span></p><p class="MsoNormal" style="line-height:12.0pt"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:#44546a">Spokane, WA 99201</span><span style="color:#44546a"></span></p><p class="MsoNormal" style="line-height:12.0pt"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:#44546a">Telephone: (509) 252-5074</span><span style="color:#44546a"></span></p><p class="MsoNormal" style="line-height:12.0pt"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:#44546a">Mobile: (509) 994-1143</span><span style="color:#44546a"></span></p><p class="MsoNormal" style="line-height:12.0pt"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:#44546a">Facsimile: (509) 928-3084</span><span style="color:#44546a"></span></p><p class="MsoNormal" style="line-height:12.0pt"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:#44546a">Email: </span><span style="color:#44546a"><a href="mailto:rob@rowleylegal.com"><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:blue">rob@rowleylegal.com</span></a></span></p></div><p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif;color:#44546a"> </span></p><div><div style="border:none;border-top:solid #e1e1e1 1.0pt;padding:3.0pt 0in 0in 0in"><p class="MsoNormal"><b>From:</b> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> [mailto:<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Eric Nelsen<br><b>Sent:</b> Tuesday, November 07, 2017 8:49 AM<br><b>To:</b> WSBA Real Property Listserv <<a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a>><br><b>Subject:</b> Re: [WSBARP] Execution on judgment</p></div></div><p class="MsoNormal"> </p><p class="MsoNormal"><span style="color:#1f497d">Wait, maybe I am all wet, but as I read that statute, it <b><i>is</i></b> possible to foreclose on the member's transferable interest in the LLC, per <a href="http://app.leg.wa.gov/RCW/default.aspx?cite=25.15&full=true#25.15.256">RCW 25.15.256(2)</a>. 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?</span></p><p class="MsoNormal"><span style="color:#1f497d"> </span></p><p class="MsoNormal"><span style="color:#1f497d">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 <a href="http://app.leg.wa.gov/RCW/default.aspx?cite=25.15&full=true#25.15.265">RCW 25.15.265(4)</a>. The judgment creditor would thus effectively seize ownership and control of the LLC and its assets.</span></p><p class="MsoNormal"><span style="color:#1f497d"> </span></p><p class="MsoNormal"><span style="color:#1f497d">Do you think that would work?</span></p><p class="MsoNormal"><span style="color:#1f497d"> </span></p><div><p class="MsoNormal"><span style="font-size:12.0pt;color:#1f497d">Sincerely,</span></p><p class="MsoNormal"><span style="font-size:12.0pt;color:#1f497d"> </span></p><p class="MsoNormal"><span style="font-size:12.0pt;color:#1f497d">Eric</span></p><p class="MsoNormal"><span style="font-size:12.0pt;color:#1f497d"> </span></p><p class="MsoNormal"><span style="font-size:12.0pt;color:#1f497d">Eric C. Nelsen</span></p><p class="MsoNormal"><span style="font-size:12.0pt;color:#1f497d">SAYRE LAW OFFICES, PLLC</span></p><p class="MsoNormal"><span style="font-size:12.0pt;color:#1f497d">1417 31st Ave South</span></p><p class="MsoNormal"><span style="font-size:12.0pt;color:#1f497d">Seattle WA 98144-3909</span></p><p class="MsoNormal"><span style="font-size:12.0pt;color:#1f497d">phone 206-625-0092</span></p><p class="MsoNormal"><span style="font-size:12.0pt;color:#1f497d">fax 206-625-9040</span></p></div><p class="MsoNormal"><span style="color:#1f497d"> </span></p><div><div style="border:none;border-top:solid #b5c4df 1.0pt;padding:3.0pt 0in 0in 0in"><p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma",sans-serif">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma",sans-serif"> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">mailto:wsbarp-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Robert Pampell<br><b>Sent:</b> Monday, November 06, 2017 10:43 PM<br><b>To:</b> 'WSBA Real Property Listserv'<br><b>Subject:</b> Re: [WSBARP] Execution on judgement</span></p></div></div><p class="MsoNormal"> </p><p class="MsoNormal">No. See RCW Sec. <span lang="EN">25.15.256, esp. subsection (5). Known as “charging order exclusivity,” this subsection was added in the amendments effective 1/1/16.</span></p><p class="MsoNormal"><span lang="EN"> </span></p><p class="MsoNormal"><span lang="EN">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.</span></p><p class="MsoNormal"> </p><p class="MsoNormal"><span style="font-size:6.0pt;font-family:"Arial",sans-serif;color:#1f497d"> </span></p><p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1f497d"><img border="0" width="152" height="59" id="Picture_x0020_0" src="cid:image001.jpg@01D357A9.5A352C00" alt="21 Law logo - color (no tag) FB size for letterhead.jpg"></span><span style="font-size:9.5pt;font-family:"Arial",sans-serif;color:#1f497d"></span></p><p class="MsoNormal"><span style="font-size:6.0pt;font-family:"Arial",sans-serif;color:#1f497d"> </span></p><p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1f497d">Robert Pampell, Attorney</span></p><p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1f497d">21st Century Law Office (r)</span></p><p class="MsoNormal" style="text-autospace:none"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#365f91">19125 Northcreek Parkway, Suite 120</span></p><p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#365f91">Bothell, WA 98011</span></p><p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1f497d">voice: 425-329-2629<br>fax: 877-640-6403<br>cell: 425-501-4784<br>email: </span><span style="color:#1f497d"><a href="mailto:rpampell@swcp.com" title="mailto:rpampell@swcp.com"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue">rpampell@swcp.com</span></a></span><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1f497d"></span></p><p class="MsoNormal"><span style="color:#1f497d"><a href="http://www.linkedin.com/in/robertpampell"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue">http://www.linkedin.com/in/robertpampell</span></a></span><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1f497d"></span></p><p class="MsoNormal"><span style="color:#1f497d"><a href="http://www.21stlawoffice.com/"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:blue">www.21stLawOffice.com</span></a></span><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1f497d"></span></p><p class="MsoNormal"> </p><p class="MsoNormal"> </p><p class="MsoNormal"> </p><div><div style="border:none;border-top:solid #e1e1e1 1.0pt;padding:3.0pt 0in 0in 0in"><p class="MsoNormal"><b>From:</b> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">mailto:wsbarp-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Craig Gourley<br><b>Sent:</b> Monday, November 06, 2017 3:41 PM<br><b>To:</b> <a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a><br><b>Subject:</b> [WSBARP] Execution on judgement</p></div></div><p class="MsoNormal"> </p><p class="MsoNormal">Listmates, </p><p class="MsoNormal">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. </p><p class="MsoNormal"> </p><p class="MsoNormal"><b><span style="font-size:14.0pt">Gourley Law Group</span></b></p><p class="MsoNormal"><b><span style="font-size:12.0pt">Snohomish Escrow</span></b></p><p class="MsoNormal"><b><span style="font-size:12.0pt">The Exchange Connection</span></b></p><p class="MsoNormal"><b><span style="font-size:14.0pt"> </span></b></p><p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial Rounded MT Bold"">1002 10<sup>th</sup> Street / PO Box 1091</span></p><p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial Rounded MT Bold"">Snohomish, WA 98291</span></p><p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial Rounded MT Bold""> </span></p><p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial Rounded MT Bold"">360.568.5065</span></p><p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial Rounded MT Bold"">360.568.8092 fax</span></p><p class="MsoNormal"><u><span style="font-size:10.0pt;font-family:"Arial Rounded MT Bold";color:#0563c1"><a href="mailto:Craig@glgmail.com">Craig@glgmail.com</a></span></u><span style="font-size:10.0pt;font-family:"Arial Rounded MT Bold""></span></p><p class="MsoNormal"> </p></div></body></html>