Will putting property in LLC protect credit?

[Vernon Henry]

If you default on a loan for a property owned by your LLC, would your personal credit be harmed?

[Jon Holdman]

If you bought the property in your name and have the loan in your name, transferring it to an LLC will not help a bit. In fact, it may hurt more because it gives the lender grounds to call the loan due based on the due-on-sale clause.

If you bought it in the LLC's name and the loan is in the LLCs name with no personal guarantee, then it should not have any affect. Even that, though, doesn't prevent the lender from suing you as the member or manager of the LLC.