QUESTION
I have a Nevada corporation, but I operate in NY. Can bank accounts of the company be frozen if I have a personal judgement?
Asked on Oct 17th, 2011 on Business Law - New York
More details to this question:
Even if I am 100% owner of the corporation, and there is a judgment against me (not the company), can they freeze the company''s bank account? I should add that the collection company has proof I run the company, but can they freeze accounts without proof that I own the company?
From my understanding, Nevada corporations are not required to report stock ownership to the state and therefore the collection company would have no proof I own the company unless they subpoena shareholder records and Nevada protects against that. Thank you for the help!
1 ANSWER
Michael Stolzar
It should not be possible for your judgment creditor to freeze the company's bank account. The judgment creditor could try to levy on sums the corporation owes to you and prevent you from being paid. If this has happened, you need to contact a litigator to contest the action.
This is not intended to be legal advice, and is general in nature. No attorney- client relationship exists or is formed by this information. Furthermore, this does not represent the views or opinions of Lexis-Nexis or its affiliated companies.
Answered on Jun 14th, 2012 at 10:01 AM