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

UPDATED: Mar 27, 2012

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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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 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.

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.

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