Legal Question in Business Law in Oklahoma

Corporate Seperation

I have a corporation that I run with 2 silient partners, they provide capital investment and I provide operation direction. I have 2 garnishments that will not be paid until I can generate revenue for the company. Will the accounts that are setup for the corporation be subject to garnishments since I'm involved with the company or are they seperate from me. If not what can be done to seperate me from the accounts.


Asked on 9/23/02, 2:00 pm

1 Answer from Attorneys

Hunt John

Re: Corporate Seperation

Thank you for your question. A garnishment is legal process which is issued by the court to a person, corporation, partnerhsip or other legal entitty known as the garnishee. The garnisheee among other things, is required to file a garnishee Answer in which the garnishee discloses whether it has,holds or owes money, accounts owing to the debtor. The creditor who has caused the garnishment to be issued can then potentialy obtain from the garnishee that which the garnishee owes to the debtor. Your question states that you have two garnishments and I cannot thell from that statement what you mean. Whether you received these on behalf of the corporation as garnishee or whether you are just aware that garnishments have been issued. If you are saying that the corporation for which you and two silent partners are involved was served a garnishement which named you as debtor and you received it as representative of the corporation as the garnishee, then you need to consult an attorney as you have been put into a very diffficult position. The corporation, if it has been served as garnishee MUST file an Answer. If nothing is owed to you then their answer would say so. However, I imagine that the entire matter will become a legal entanglement that the court will have to sort through. If you have a true corporation and have maintained it properly then you and the corporation are separate entities and the corporation would not be liable for your personal debt or judgments. Again you need to seek the advice of an attorney to help you through what is going on.

Read more
Answered on 9/23/02, 2:23 pm

Related Questions & Answers

More Business Law questions and answers in Oklahoma