Can an LLC judgment creditor “pierce the corporate veil” and hold a Chapter 7 debtor personally liable for that debt?

It depends on the facts and circumstances of each case.

An Oklahoma bankruptcy court held that a judgment creditor could not pierce the corporate veil under Oklahoma law to hold the Chapter 7 debtor personally liable, as the sole owner of an LLC, for the creditor’s judgment debt against the LLC, in a proceeding to hold the debt nondischargeable under Code § 523(a)(2)(A)).

In re Thompson, 585 B.R. 890 (Bankr. W.D. Okla., Dec. 21, 2017)

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