| gen. |
reverse piercing of the corporate veil (So what is "reverse piercing" of the corporate veil? Reverse piercing is a lesser known, and lesser used, concept whereby a creditor of an individual can execute on corporate assets to satisfy a civil judgment against the individual owners. A creditor can use the reverse-pierce remedy to hold a corporation liable for the debts of the controlling shareholder where the shareholder/debtor formed or used the corporation to secret assets and avoid preexisting personal liability. For instance, if an individual facing a possible individual judgment creates a corporation or LLC and transfers assets in to a controlled entity so the assets would be protected from a civil judgment then individual's creditors could levy upon the corporate assets under the reverse-piercing theory.  assetprotectionfl.com Alexander Demidov) |
