Finding an alter ego corporation to an individual judgment debtor can be a very effective collection tactic. Consider the situation where the debtor owns his or her own business and draws no salary and deposits no funds in his or her personal bank account. Obviously the debtor has access to income because he or she is surviving, buying food, maintaining a home, etc. From a collection standpoint, you could garnish the debtor's salary but the business will answer no salary is being paid and you will be arguing the truth of that in court for months with no relief for your client. The debtor's bank account will also be empty because all personal expenses are being paid directly from the business to protect his or her assets from you. So what can you do?
