Can a court ordered personal debt be taken out of your business banking account?

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Can a court ordered personal debt be taken out of your business banking account?

I have a court ordered personal credit card debt. Can this be taken out of my business account?

Asked on March 27, 2012 under Bankruptcy Law, Connecticut

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

What kind of a business is it?

If the business is a corporation or limited liability company (LLC), then it is a separate legal entity from you and should not be subject to your personal debt (just as your personal assets should be protected from most business-related debts).

However, if the business is a sole proprietorship (you are doing business under a business name without having a corporation or LLC), then there is no separate business entity--there is only you. The "business" account is actually your account, and would be subject to a personal debt.


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