If you are a signatory on a non-profit /business checking account, is it safe fromyour personal debt?

Get Legal Help Today

 Secured with SHA-256 Encryption

If you are a signatory on a non-profit /business checking account, is it safe fromyour personal debt?

Asked on January 19, 2012 under Business Law, California

Answers:

Joseph Gasparrini

Answered 9 years ago | Contributor

 

Based on your question, I assume that you have some type of management role with a non-profit organization, and you have signing authority on a checking account of the non-profit. The answer to this type of question - involving the rights of a creditor to attach or execute on a particular bank account - depends on the manner in which the account is held. If the non-profit is a properly organized limited liability entity under applicable state law (meaning a corporation or a limited liability company) an if title to the account is held in the name of the entity (not in the name of its officers or any other individuals such as yourself), then your creditors would not have a right to attach or execute upon money in the bank account of the non-profit organization merely on account of the fact that you are a signatory on that account.

Joseph Gasparrini

Answered 9 years ago | Contributor

Based on your question, I assume that you have some type of management role with a non-profit organization, and you have signing authority on a checking account of the non-profit.  The answer to this type of question - involving the rights of a credtor to attach or execute on a particular bank account - depends on the manner in which the account is held.  If the non-profit is a properly organized limited liability entity under applicable state law (meaning a corporation or a limited liability company) an if title to the account is held in the name of the entity (not in the name of its officers or any other individuals such as yourself), then your creditors would not have a right to attach or execute upon the money in the non-profit's checking account.


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 AttorneyPages.com 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 with SHA-256 Encryption