What happens if my company goes bankrupt? Does this affect my personal credit report?
Your company is a separate entity from you. A company's bankruptcy does not affect your personal credit score unless you have joint obligations with it, usually guarantees provided to financial institutions or suppliers when opening an account. You are also personally liable for certain tax debts of your company if you are a director of that company.
Questions reliées
- After the settlement offer is accepted, will I be able to continue operating my incorporated event planning company without any problems? I took out a $40,000 loan from the government hoping things would return to normal. However, I will likely be unable to repay it by January 1, 2222.
- Can I go bankrupt if I work?
- Hello, I declared bankruptcy last month. I had a surplus salary, so I was paying $344 per month. However, I recently lost my job indefinitely. I contacted my trustee, and my monthly payment was reduced to $225. Is it normal that I'm still paying the surplus even though my income has been cut almost in half?
- How long after declaring personal bankruptcy can I incorporate?
- I am a co-owner of a company (2 people). We are drowning in debt and considering bankruptcy. Since we personally guaranteed some of the company's loans and credit cards, I imagine we will be responsible for repaying these debts? If my partner becomes insolvent, would I be held liable for all of these debts (guarantees)? Would it be better for us to file for personal bankruptcy after the company goes bankrupt?