can my personal bank account be garnished for a business judgement

UPDATED: Sep 30, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 30, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

can my personal bank account be garnished for a business judgement

i had a s corporation and i had to close it do to not making money but
while i had coporation i had a judment and can judment leavy my
personal bank acct

Asked on June 21, 2016 under Business Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

They should not be able to garnish your personal bank account for a corporate (even S-corporate) debt unless:
1) You guaranteed the debt;
2) Even though it was ostensibly a "corporate" debt or judgment, it was really against you personally (e.g. it was a credit card which you used for business but was in your name personally, or was for a lease you signed personally, not as a corporate representative; it was for certain tax debts for which you are personally liable, even if they are corporate taxes [e.g. sales tax; income tax wage withholding); it was for a tortious act, like defamation or an auto accident, which you personally committed while at work);
3) The creditor brought a legal action to "pierce the corporate veil" and show that the corporation was a pretense: that you had co-mingled corporate and personal assets to such an extent that there really was no meaningful distinction between the company and you; or 
4) They can show that you fraudulently or improperly moved corporate assets into your own name, so even it's your bank account, it's really corporate money that you were sheltering or hiding there.
Other than the above, they should not be able to reach your personal money for a corporate debt, and you could bring a motion in the legal action (the one that led to the judgment) seeking a court order to lift the garnishment and return any funds taken.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption