Ask Bill your personal finance question

Foreclosure Corporation

We have personal and corporate accounts at the same bank. If we default on a loan, can the bank seize our corporate accounts?

We may have to foreclose on a rental property and the second mortgage is with the bank that we have our personal and self-employed incorporated business account. We realize that our personal accounts can be levied and we need to change banks, but can they garnish a Business Account with and employee on the payroll? Also, can the bank get access to our Safe Deposit Box to try to gain anything that is of monetary value inside??

Read full question
Bill's Answer
4.0
/5.0
(7 Votes)

Bills.com | Find Learn Save

If you set up, funded, and operated the corporation properly the corporation's creditors will not be able to pierce the corporate veil and reach into the shareholder's and officer's assets.

The converse is also true. If the corporation is a separate entity then the bank does not have the right to seize its assets without receiving a judgment first.

Regarding the safe deposit box, I have never heard of a case where a bank seized the contents of a safe-deposit box without receiving a judgment first. If you continue to pay the fee to rent the space, the contents of the safe deposit box cannot be touched.

I hope this information helps you Find. Learn & Save.

Best,

Bill

www.bills.com/

Get Debt Help!
4.0
/5.0
(7 Votes)

People also like to Read

Brad Stroh

Debt Relief Options | Compare which debt relief option is best between Consumer Credit Counseling Services and Debt Settlemen... Read more >>

Brad Stroh

9 do-it-yourself debt solutions, including how to stop a collector's calls, validate debt, dispute an error in your credit re... Read more >>

Mark Cappel

Get Out of Debt Free | The lowest-cost method of getting out of debt for free is bankruptcy. You have other options, too, and... Read more >>

Daniel Cohen

Review your debt consolidation options. Find the right way to pay off your debt. Pay attention to debt consolidation reviews ... Read more >>

Mark Cappel

Learn about credit cards. Find low interest credit cards. Understand how to use credit cards to boost your credit. Make sure ... Read more >>

0 Comments

1500 characters remaining
loading...