Allowing someone else to use a checking account to avoid levy...legal or not?

Asked almost 2 years ago - Grafton, IL

A friend of a friend is facing bank levys form unpaid credit card debt, and would like to open a sole proprietorship business account with my friend, where this individual facing the levy would deposit their paychecks, and use a business atm card to conduct their daily business like a personal account. The catch is that my friend will be the business owner, and this individual just an authorized employee user of the account, so the account will be in my friends SSN, thus avoiding this individual having their money levied. This sounds terribly sketchy to me...is this legal or illegal? Thanks!

Attorney answers (3)

  1. Judy A. Goldstein

    Contributor Level 20

    4

    Lawyers agree

    1

    Answered . Tell your friend this is a VERY VERY bad idea.

  2. Patrick Begley

    Contributor Level 14

    4

    Lawyers agree

    1

    Answered . Go with your gut. Sounds like your friend would be helping the debtor defraud his creditors.

    The information provided in this post is not "legal advice." Rather it is general information on common legal... more
  3. Keith G Langer

    Pro

    Contributor Level 19

    4

    Lawyers agree

    1

    Answered . The plan as stated smacks of fraud.

    Further, all the liability seems to lie on your friend, and all the benefits with the deadbeat seeking to evade his creditors.

    The foregoing is for general information purposes and does not establish an attorney-client relationship.

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