Are Assets Held in a LLC Shielded from Personal Creditors

[BinaryMan]

My question involves business law in the state of: Nevada

I have personal debts on which I defaulted, which after 2 years third-tier collection agencies continue to call but have never sued or filed for garnishment. Assume the applicable statute of limitations is 4 years as it occurred in California. This means they *may* come after me (successfully) for the next 2 years, especially if I suddenly have assets or a mortgage on my credit.

Prospect:

I create an LLC in Nevada with my wife and a 3rd partner. I get a mortgage on a rental property with this LLC, but since it has no business history I must guarantee the loan. This is expected and my question is not to do with my own liability for the mortgage. What I was not able to find online, is an answer about whether the property which resides in the LLC (and never in my name, not transferred from my name, etc) can be attacked through the corporate veil or whether it is fully protected from my *personal* creditors (also this is not a "shell", it will be a legitimate operating business).

The key point is that the LLC normally protects the property except in the case of fraud. I can understand, if a judgement was in progress and I suddenly started a business, it can be seen as an attempt to hide the assets. However, in the absence of any suit or judgement, if I create an LLC in this manner, it should protect any assets inside the LLC and the creditor can only obtain a charging order (which can be mostly mitigated by good LLC setup) ?

[Mr. Knowitall]

If you own an LLC, you own it. It is an asset.

[SChinFChin]

Read about charge order protection for NV LLC's:

http://www.nolo.com/legal-encycloped...bt-nevada.html

Note that when it's all said and done, in the last paragraph, to have any protection, it says the LLC must be formed before you incurred the debt, and it appears from your narrative that you already incurred the debt, can't pay it, and now trying to form an LLC to shield assets from the debt, which is a NO NO. Apparently when you incurred the debt, not when a creditor files suit is the key.

[BinaryMan]

Thanks, but I meant liability beyond the charging order - that one is always on the table but you can just stop distributions to yourself (then the creditor gets hit with taxes, they usually don't bother to pursue it). In particular, whether they can place a lien on an asset of the LLC when you never personally had it in your name, because effectively it is owned by the LLC only although it is controlled by all owners. To do so would impact innocent owners other than the the one with the debt.

[maxeypen]

Note that when it's all said and done, in the last paragraph, to have any protection, it says the LLC must be formed before you incurred the debt, and it appears from your narrative that you already incurred the debt, can't pay it, and now trying to form an LLC to shield assets from the debt, which is a NO NO. Apparently when you incurred the debt, not when a creditor files suit is the k