I own a small remodeling company in NC. My business is an (S) corp. Due to the down turn in the economy, I have accrued in excess of $30,000.00 in credit card with five different credit card companies. Can these credit card companies arrange to garnish my business account?

What names are the credit cards in? Individual, company, something else?

I own a small remodeling company in NC. My business is an (S) corp. Due to the down turn in the economy, I have accrued in excess of $30,000.00 in credit card with five diferent credit card companies. Can these credit card companies arrange to garnish my business account?


First, they would have to sue you, serve you with process, and get judgments against you.

Once they have done that, and if these credit card debts are owed by you individually, the creditors probably don't have proof positive that you are the owner of the corporation. They will have to get that proof, and use it to get an order allowing them to garnish the corporate account.

If, on the other hand, the credit cards are in the name of your corporation, they will be able to get a writ of garnishment more easily, once they have reduced their claims to judgment. Also, unlike individuals, corporations are not entitled to exemptions from execution and garnishment, generally speaking.