Comments on: Can corporate assets be attached in personal liability issues? http://www.protect-assets-strategy.com/protecting-assets/can-corporate-assets-be-attached-in-personal-liability-issues Asset Protection for a Safe Retirement Wed, 10 Mar 2010 19:40:59 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: cyahlaytar http://www.protect-assets-strategy.com/protecting-assets/can-corporate-assets-be-attached-in-personal-liability-issues/comment-page-1#comment-4289 cyahlaytar Tue, 15 Sep 2009 22:54:59 +0000 http://www.protect-assets-strategy.com/protecting-assets/can-corporate-assets-be-attached-in-personal-liability-issues#comment-4289 I'm not so sure from a personal side, but I know from the corporate side that in bankruptcy the law can determine that the corporation is a "disregarded entity", which means it doesn't recognize that the corporation and the person are different and can come after your personal assets. In such a situation, with you having 100% of the ownership, I believe to some level they will be able to attack the assets of the corporation, depending on the amount and nature of the liabilities you owe. This is especially true if you are seen to be putting assets into the corporation in order to avoid them being attacked in a personal bankruptcy. If there was greater separation of activities and additional owners involved with the corporation you would have better chances of safeguarding the corporate assets. But as you are the 100% owner of the corporation, I believe the courts would determine that the corporation ownership is an asset and use that as basis of extending the bankruptcy attachment to these assets as well. So long answer to say yes the corporate assets can be attached in a personal bankruptcy.<br><b>References : </b><br> I’m not so sure from a personal side, but I know from the corporate side that in bankruptcy the law can determine that the corporation is a "disregarded entity", which means it doesn’t recognize that the corporation and the person are different and can come after your personal assets.

In such a situation, with you having 100% of the ownership, I believe to some level they will be able to attack the assets of the corporation, depending on the amount and nature of the liabilities you owe. This is especially true if you are seen to be putting assets into the corporation in order to avoid them being attacked in a personal bankruptcy.

If there was greater separation of activities and additional owners involved with the corporation you would have better chances of safeguarding the corporate assets. But as you are the 100% owner of the corporation, I believe the courts would determine that the corporation ownership is an asset and use that as basis of extending the bankruptcy attachment to these assets as well.

So long answer to say yes the corporate assets can be attached in a personal bankruptcy.
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