As a director of a company that goes insolvent, you may think that it would have various impacts on your ability to obtain credit. Whilst there may some implications involving you if your company does go into liquidation, it’s not as bad as it may first appear. Below is some important information you should know before proceeding with a company liquidation.
If you are a director of a company that becomes insolvent, a record of the company liquidation will be recorded on your personal credit file whilst the liquidation is still being completed. This information can be accessed by lenders when they do a background check on your credit history.
Whilst this does sound ominous, it’s important to remember that a company is a separate legal entity. As a director, you may not be directly liable for your company’s debts. A company liquidation is not the same as a personal bankruptcy and does not leave the same mark on your credit file, thus it does not prevent you for obtaining a personal loan like bankruptcy does.
Once the liquidation has been finalised, the record of the liquidation should then come off your personal credit file or it will be marked as finalized. If you need to obtain personal finance whilst the liquidation is still being completed and the liquidator has not identified any claim against you, then most liquidators will provide a letter to assist with your finance application.
If you would like to learn more about the impacts of a company liquidation and which path is best for you it is best to consult a registered liquidator. Our friendly and registered liquidators can help you do that and assist you through each step of the way. We offer a FREE initial consultation and expert advice. Please contact us on 1800 731 155 now to learn more about your options.