How can a business owner be added as a judgment debtor?

While this situation appeals shocking, it’s completely avoidable. In this type of case, the business owners did little to protect themselves against these lawsuits.

The most critical errors they made were not acknowledging corporate formalities and failing to maintain separation between themselves and their business entities. Among other things, they didn’t keep corporate records. They used corporate funds to pay personal bills. They also operated their businesses from home while using their personal equipment. For the most part they acknowledged their personal liability in court.

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