I have a small company that is incorporated I am thinking about shutting it down. The leases on my machines

Question

are too expensive and I cant keep the business going If i file bankruptcy for this corp what happens to my personal credit?

Answer 1

If you applied for credit in the busniess name alone then your credit will not be effected. However, since you have a small business I am almost certain the bank had you sign as the guarantor thus making you responsibile if the business went belly up. If that's the case then it will dininately reflect on your credit scores. For the most part only hugh fortune 500 company can get a bank loan with any individual being personally responsibile. Don't get me wrong small business owner can and do get loans without being a guarantor but you'll have to get a rock solid business plan that would convince a bank to extend you a credit line. This involves having some kind a contract with a bigger and more reputable company than will convince them that you have the means to pay back the loan. And the load in this type of situation is base on the contract. For example if you have a 10 year contract with AT&T thats projected at $100,000. per year then credit they issue will be base on all those factors.

Answer 2

If it's registered as a limited company you should be ok,...if not, kiss your assets goodbye

Answer 3

When a business is incorporated, it is considered a separate entity. Therefore it will not affect your personal credit. Any credit cards in your name used to fund the business will still be your responsibility to repay if you don't file yourself, but otherwise, it is the business going bankrupt, not you, so the only thing you will lose is the money you have already put into the business.

A bankruptcy lawyer could give you a more detailed account of what to expect when filing for bankruptcy as a corporation.

Good luck. I hope this helps.