What is an “alter ego” as it relates to collections

What is an “alter ego” as it relates to collections

Q.

What is an “alter ego” as it relates to collections?

A.

An alter ego is a shell or a sham set up for an improper purpose to avoid a creditor or creditors. Basically, from a collections standpoint, the attorney will want to see if the debtor has moved funds or assets over to the sham entity as a way to avoid creditors.