Arizona Garnishments

Q: In the state of Arizona can a business account be garnished from multiple member LLC’s with out a judgement against the LLC?

A: A creditor could send a garnishment to the LLC, demanding that any amounts the LLC would otherwise pay to the debtor must be sent to the creditor. In other words, the creditor might be able to get to money the LLC owes to one of its owners or employees. But unless there’s a judgment against the LLC, the creditor could not garnish the LLC’s money. Garnishment laws can be tricky, though, and your questions doesn’t have a lot of details. You will probably want to consult with a lawyer before making any decisions related to garnishment.

* This answer does not constitute legal advice. I am admitted in the State of Arizona only. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. You should not rely on this advice alone, and nothing in these communications creates an attorney-client relationship.

Answered by Arizona Collection Lawyer at Gunderson, Denton & Peterson, P.C.

Re-posted from AVVO Legal Questions & Answers.