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Can my S- corp business be garnished for a personal debt(ie car loan) in the state of VA?

Richmond, VA |

This pertains to a car loan that is now with an atty's office.

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Attorney answers 1


Your question does not provide enough details, so I will give you a general answer.

A person can only have wages or bank accounts garnished if the creditor has obtained a judgment against that person. That means that the creditor filed a lawsuit against the person and won a judgment. If the person does not pay the creditor, the creditor can then use other means to collect on the judgment, including garnishing the person's bank account or wages.

Therefore, if the creditor obtained a judgment against the person only, the creditor cannot garnish the bank account of a corporation. However, if that corporation owed money to the person/debtor, the creditor could file a garnishment with the corporation. In other words, if the corporation owed wages to the person/debtor, rather than paying the wages, the corporation would be required to pay a certain amount to comply with the garnishment.

You should contact an attorney to review all the documents pertaining to this issue. If the corporation does not comply with a garnishment summons, the corporation could become liable to the creditor for the amount it should have paid on the garnishment.

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