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TexLaw, Attorney
Category: Legal
Satisfied Customers: 4430
Experience:  Lead trial/International commercial attorney licensed 11 yrs
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I understand that banks can confiscate your checking accounts

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I understand that banks can confiscate your checking accounts if you are behind on your payments. But can they go across corporate vails and get the money in your other accounts that are property of your LLC's and Corporations?
Stanley Palivoda
Hi Mr. Palivoda,

My name is Zachary. I will answer your legal questions today.

A bank may not, without a court order, hold the assets of a corporation or LLC liable for personal debt of an account holder. The bank would have to prove that the person is using the corporate bank account for personal expenses (and pierce the corporate veil), or prove that money was moved into the account in an attempt to defraud the bank from what was due to it (fraudulent transfer).

As long as neither of these two situations exist, then the corporation or LLC's assets are protected.

Please let me know if you have any further questions. Please also kindly consider rating my answer positively so that I am credited by the website for my work on your question. Rating positively does not cause an additional charge and does not prevent us from further discussing your questions.

Kind regards,
TexLaw and 11 other Legal Specialists are ready to help you
Customer: replied 4 years ago.