2 ms·
Theoretically it stands to reason that the person might be able to avoid being personally liable for any debt. But it’s worth remembering that collecting a debt
by singleshot_ 3y ago
Theoretically it stands to reason that the person might be able to avoid being personally liable for any debt. But it’s worth remembering that collecting a debt from an entity is often far less cumbersome than collecting against an individual. For example, the LLC has no homestead; none of a corporation’s profits are protected wages.
- reaperman 3y agoYes, unless something like the Texas Two-step divestment scheme is also available to that hypothetical entity. Then the entity which owes the debt would no longer be the one with the revenue/assets.
- singleshot_ 3y agoI truly wish I could get a good explanation from someone wise vis a vis why this wouldn’t just be a fraudulent transfer but yes, I hear what you are saying and it seems true, assuming you get over that hurdle (which everyone with sufficient lawyers seems to be able to do).