Can my business bank account be levied for collection on credit card debt?
have two large outstanding credit card debts we can't afford to pay due to drop in business..
If a credit card compnay or collection agent gets a judgement against me...can they garnish our business checking account..or only ones in our personal names?
—david
Many small business owners use personal credit cards to get through slow periods. If you have credit card judgments against you personally, you are at risk of property lien, wage garnishment, and bank account levy.
For more detailed information on this topic, see this article.
A bank account levy against a business account is possible if the account is a DBA “your name” or something like that, and where your SS# is attached etc.
When you set up the account was it with an EIN # or your social?
How is the business structured, C or S corp, LLC, partnership, other?
Can you provide more information about the current status of your unpaid credit card debts, who you owe, the balances, who is now collecting, have you been sued, is there a judgment currently?
What state do you live in?
If you answer these questions in a comment reply below I can provide more than just general feedback.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry, and is a regular contributor to several personal finance websites.
