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    Join Date
    Oct 2006
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    Default Re: S Corp Stock Exempt from Creditors

    Quote Quoting oscar19
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    My question involves bankruptcy in the state of: Georgia

    Can a creditor take s corp stock from a shareholder?
    Example: Shareholder owns stock in S Corp and is personally sued for everything he has; does this include his ownership in the S corp? If so, what if the Shareholders' Agreement has a transfer restriction stating that stock can only be transferred to spouse and lineal descendants?

    If the stock can be taken by creditors, how should the shareholder value his stock in the company when obtaining an umbrella policy to protect it?

    Any other tips which may be helpful I do welcome.
    Shareholder stock is an asset subject to be seized to satisfy a judgment. That is one reason why an LLC can sometimes be an advantage over an S-corp. Only the income stream with comes from a membership in an LLC can be seized, rather than the membership itself.

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