I have a personal credit card judgement. Can I protect our family business?

Additional Information:

We own a small family business in Needham and it is doing OK, but not good enough to pay off a credit card judgment against me personally. The bank that handles my business account is worried the credit card company could come after business assets or monies. What can I do to protect the family business?

ATTORNEY ANSWER:

If your business is a sole proprietorship and/or partnership, your credit card company could attempt to attach the assets of your business to pay the debt you owe the credit card company. If your company is a corporation, limited liability partnership (i.e. LLP), and/or limited liability company (i.e. LLC), it is a separate legal entity from you individually and your credit card company cannot go after the business assets. If your business is not currently a corporation, LLC or LLP, you should consider forming one of these entities to protect both your business and personal assets. By setting up a corporation, LLC or LLP, your personal and business assets will be kept separate and you will not be personally liable for debts of the business. You can only loose the amount you have invested in the corporation, LLC or LLP on any debts owed by the business. You should consult with a lawyer and they can describe for you the benefits of establishing a corporation, LLC, and/or LLP. 

The Needham Business Attorneys at Goldman & Pease provide legal representation for all business related matters in Needham, Massachusetts and the surrounding communities including Newton, Brookline, Dedham, Westwood, Dover,  Wellesley, Weston  and the entire Boston Metrowest region.