How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask wallstreetesq. Your Own Question
wallstreetesq.
wallstreetesq., Attorney
Category: Business Law
Satisfied Customers: 17134
Experience:  10 years, Corp litigation, Of Counsel to several global and nationwide corporation
16356563
Type Your Business Law Question Here...
wallstreetesq. is online now
A new question is answered every 9 seconds

I own an electrical contracting business and this economy has

Resolved Question:

I own an electrical contracting business and this economy has had a major negative impact on it, I have turned in trucks (voluntary repossesion) and have large credit card debts that I am unable to pay. I have made changes/adaptions to my business in an effort to survive so I want to keep the business open. My question is can these creditors freeze my bank account and force me out of business. I can live with judgements against myself and the business, but I cannot operate of my checking account is frozen.
Submitted: 7 years ago.
Category: Business Law
Expert:  wallstreetesq. replied 7 years ago.
are the credit cards in your name or the business also do you have a separate corp account?
Customer: replied 7 years ago.
Some are in my name, but the bulk are in the corporations name, including the vehicles.
Expert:  wallstreetesq. replied 7 years ago.
do you have checks and all income going into your name or the corp?
Customer: replied 7 years ago.
Corporations name
Expert:  wallstreetesq. replied 7 years ago.
create two corps, for example one for your name so you can deposit checks that come in your name into a corp account with a different tax id, where collectors cannot freeze.

You can incorporateCustomerllc, this way checks in that corp would go into the new account. The prior debts of the corp, cannot go after them. If your name is XXXXX XXXXX create a separate corp as john doe llc or john doe family llc or c corp, and put your personal funds into that account.

Then you will be for the most part protected from collections.
wallstreetesq. and 6 other Business Law Specialists are ready to help you