Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
Thank you for using JustAnswer. I am researching your issue and will respond shortly.
If the judgment was only against you, and not the S Corp, then the funds of the S corp can't be seized (at least not initially). Any wages, or stockholder dividends, paid to you can be garnished, but only at the time of payment. If you are not drawing a wage or dividend, the S Corp's accounts cannot be touched unless the judgment is against the S Corp.
Now it's possible that the creditor could try to go after the funds of the S Corp under an "alter ego" theory, alleging that you and the company are essentially the same. But assuming that you've kept good records, books, kept funds separate, etc... then this would be almost impossible to succeed.
Hope that clears things up a bit. If you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, XXXXX XXXXX luck to you!
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).