Am I personally protected from a bank lien if all my incomes goes through a Corporation?
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Location: Visitation between Wal-Mart & Home Depot
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Quote:
Originally Posted by MikeSeattle
Hello,
I have a question:
I have about $50k in UNSECURED credit card debt and one judgement has been obtained against me (only one so far). I do not have any personal accounts at any major banks, I use a small local bank and even there I try not to keep much money. My mortgage is paid by a corporation, otherwise I use cash for daily expenses.
I am an officer of a corporation and currently this corporation has a single member (myself).
All income stays in the corporate account, I DO NOT withdraw anything as salary.
My question: Can the plantiff, their attorney or a collection agency somehow manage to intercept the corporations' income? Or am I safe as long as the income is earned by the corporation and not myself?
P.S. This is a purely legal question, please no "moral" talk,only facts =) Thank you.
You need an answer from a pure lawyer who has been paid pure money for pure representation.
Hello,
I have a question:
I have about $50k in UNSECURED credit card debt and one judgement has been obtained against me (only one so far). I do not have any personal accounts at any major banks, I use a small local bank and even there I try not to keep much money. My mortgage is paid by a corporation, otherwise I use cash for daily expenses.
I am an officer of a corporation and currently this corporation has a single member (myself).
All income stays in the corporate account, I DO NOT withdraw anything as salary.
My question: Can the plantiff, their attorney or a collection agency somehow manage to intercept the corporations' income? Or am I safe as long as the income is earned by the corporation and not myself?
P.S. This is a purely legal question, please no "moral" talk,only facts =) Thank you.
Deja vu.
From April 2009:
Quote:
Originally Posted by MikeSeattle
Hello,
I have a question:
I have about $50k in UNSECURED credit card debt. I own property in my state free and clear and also have bank accounts with major
banks. Could someone please tell me if the credit card companies can put a lien against my property and levy my bank accounts or does
"unsecured" mean they cannot touch those things?
P.S. This is a purely legal question, please no "moral" answers,only facts. Thank you.
I'll be anxiously awaiting your next post sometime in the summer or fall of 2011.
If it's credit card debt, maybe you can offer some kind of a settlement? $50k is a large enough sum that I'd think they're likely to pursue any and all method they can to collect.
You need an answer from a pure lawyer who has been paid pure money for pure representation.
You have a point, but based on this scenario the answer is pretty easy.
The OP has personal liabilities of about $50,000, and is the sole shareholder of a corporation.
Because the liabilities are his, and not the corporations, the corporation's liability shield doesn't even begin to come into play. There's no need to "pierce the veil" because these aren't business debts, they're personal debts. All it takes is for the judgment holder to get the OP into court on proceedings supplemental (or whatever post-judgment collection proceedings are called in this jurisdiction) to get at the assets of the corporation.
I'll be anxiously awaiting your next post sometime in the summer or fall of 2011.
Hopefully by then it will be from MikeHoosegow....
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