Peeking Under The Corporate Veil: When Company Assets May Be Taken To Satisfy Personal Debts
While incorporating a business protects the owner from being held personally liable for company debts, the opposite is also true. The corporate veil prevents creditors from seizing company assets to satisfy the personal debts of the business' owners. However, sometimes a creditor can successfully pierce the veil and hold the company liable for debts incurred by its owner. Here's two ways this can happen. The Alter Ego Doctrine One way creditors may reverse pierce the corporate veil is by proving the company is merely an alter ego of the shareholder/owner.