Can I file bankruptcy for my business with out affecting my personal credit?
During this present economic crisis, many businesses are finding hard to survive due to low consumer spending confidence. Due to decreased consumer confidence, businesses are in deep debt due to incurring expenses. I have heard from many of my clients that shutting down the business and selling equipment also will not relieve them from debt. For this reason many are filling bankruptcy.
Under these circumstances, many are concerned about the personal credit when filling business bankruptcy. Filling business bankruptcy will not affect the personal credit if your business is an incorporated entity and if the debt incurred from the business is without your co-signing personally and it is possible to file chapter 7 bankruptcy to discharge debt as long as you are not personally liable for the debt and not listed as a petitioner in the bankruptcy case.
But these days, business credit cards almost require personal guarantee by the owner and as a result will affect your personal credit as well. This will also depend on the state laws where you are filling bankruptcy.
