When a corporation incurs a debt there is no personal liability. In other words, the corporation is protected by a corporate shield. The corporate shield says that the officers and shareholders are not personally liable for the debt. In this article, Atlanta debt collection attorney Richard Howe discusses what it means to pierce the corporate veil or bypass the corporate shield.
Deposing the Corporate Officers
First of all, during debt collection we never stop when a debtor claims to be insolvent or defunct. As an experienced debt collection law firm, we always dive deeper to help our clients collect their money. We bring the corporate officers and shareholders in for depositions. And, we force them to reveal their assets. After the deposition, we determine whether or not we can proceed with an action to bypass the corporate shield.
Georgia has a very strong pierce the corporate veil statute. Hence, it allows you to pierce the corporate veil and go after the shareholders or officers individually. Items we look at include such things as whether they funded the corporation properly or if they commingled funds. Insolvency & commingling are two of the most common reasons and legal avenues to pierce the corporate veil and hold a shareholder liable.
Howe & Associates Can Help You Bypass the Corporate Shield of Your Debtors
For over 25 years, Howe & Associates has been committed to providing high quality legal representation. We are real trial lawyers seeking full justice for real people. So, if you are a business trying to collect a business debt, contact our firm for a free consultation. Let us advise you on the best way to collect the bad debt.