Is my personal credit rating affected when I place my company into liquidation or administration?

No, liquidation does not affect your personal credit rating.  A director or a shareholder has a distinct and separate legal identity to that of the company and it is the company that is going into liquidation.

Your assets and your credit profile are separate to those of the company.  The company is a limited company and has limited liability status.  A company creditor’s ability to seek payment or issue legal proceedings is limited to going against the company only.  There is no right to seek recompense from a director or shareholder.

But, if a director has given a personal guarantee or has an overdrawn director’s loan account, creditors (or the liquidator) may pursue the director and obtain a judgement or in the worse case bankruptcy, which will then have an automatic impact on their personal credit rating.

Pursuing personal guarantees is not an automatic step taken by creditors, but is quite common.

Contact us on 0330 900 2000 or if you are concerned about a personal guarantee or overdrawn directors loan account claim.  By calling us you will understand all available options and might be told that you can avoid placing your company into liquidation altogether.

Our Licensed Insolvency Practitioners are also qualified Chartered or Certified Accountants and run businesses themselves and have even given personal guarantees.  They know the risks, concerns, and questions you will have as well as experiencing first hand the difficulties you face.  They care about making sure you get the right solution and the right support, so why not contact us without further delay on 0330 900 2000 or email

#experts  #insolvency  #liquidation