As a follow up to my previous piece, I wanted to provide more information on a bankruptcy's effect on your credit score. Your credit score is only affected by Chapter 7 and Chapter 13 personal bankruptcies. If your company is involved in a Chapter 7 or Chapter 11 corporate bankruptcy, it will not affect your credit at all--it will only affect that of your corporation.
This is the reason why people who are self-employed often incorporate. It is best to keep your personal finances separate from your company finances. Often, people pay themselves a salary under their own corporation so that if something happens to the company, that will be hurt but not personal credit.
Ultimately, bankruptcy is something to avoid on a personal level, but on a corporate level, it happens everyday.
bankrupcy bad.
ReplyDeletei like your blog
ReplyDeleteyup agreed
ReplyDeleteAh yeah, that makes sense why people would keep personal and self-owned company finances separate.
ReplyDeleteWow i did not know that it happens to corporations every day
ReplyDeletethat's why you should transfer your assets into something solid, like gold.
ReplyDeleteMakes sense!
ReplyDeletehell yes, if you are self-employed you must incorporate, or face the wrath of your companies creditors diving deep into your personal finances!
ReplyDeleteThank god Im not on a corporate level ;-)
ReplyDeleteyea thats risky..
ReplyDeleteVery good info! Thx!
ReplyDeletegreat post mate!
ReplyDeleteAre you not disbarred from holding directorships for a period after corporate bankruptcy?
ReplyDeleteuh oh!
ReplyDeletegreat info!
ReplyDeletelike it so cool
ReplyDeletethats fantastic advice
ReplyDeletegreat information on bankruptcy! cant wait for more!
ReplyDeleteVery informative post, thanks mate!
ReplyDeleteI understand incorporating a little more now, guess it makes sense to be safe from messing up your personal credit
ReplyDeleteI hope I never have to file for it.
ReplyDeletesounds about right to me.
ReplyDeleteBankruptcy is a horribel thing to go through
ReplyDeleteIf only we all had a corporation to fall back on in case of bankruptcy
ReplyDeleteinteresting facts
ReplyDeleteVery good info!
ReplyDeleteThat's a smart move, incorporating your own business. No wonder I see so many corporations around.
ReplyDeletebankruptcy is not a wise choice
ReplyDeleteDon't get in debt and pay your bills on time and you won't end up with bankruptcy!
ReplyDeleteBankruptcy is bad in general :P
ReplyDeletei honestly dont get all these ppl posting about bankruptcy..is ther something u know that i should know about in the upcoming future?
ReplyDeletegreat post
ReplyDeleteWow! Didn't know that. Interesting.
ReplyDeleteawesome post!
ReplyDeletethat's sad
ReplyDeletesounds legit
ReplyDeletekeep on lawyering!
ReplyDeletewait there is also chapter 13??what the hell? back to wiki
ReplyDeleteI wanna have a perfect score!
ReplyDeleteHm, makes sense, that's pretty smart.
ReplyDeletehey, that's some pretty useful info.
ReplyDeleteGood post, stuff I didn't know.
ReplyDeleteI never realized incorporating was a way to dodge personal bankruptcy. Incorporating can be expensive itself though.
ReplyDeleteBankruptcy is incredibly difficult to recover from. I know a few friends that are trying to bounce back, and it's been hard for them.
ReplyDeleteGreat post man.
ReplyDeleteI'm wondering how many companies have filed bankruptcy in the past couple of years...
ReplyDeletevery informative *REFRESHING*
ReplyDeletegood thing i never use credit
ReplyDeleteI'm surprised, that if a business you own files for bankruptcy that it doesn't affect you...Thats good and all I'm just surprised.
ReplyDeletethanks, hope i never need this info tho!
ReplyDeleteAh, thats handy to knwo if I ever consider going into private practice.
ReplyDeleteThat's a eye opener for sure
ReplyDelete"It is best to keep your personal finances separate from your company finances"
ReplyDeleteSo true, really good tip.
Yikes - didn't know that.
ReplyDeleteincredible info, lad
ReplyDeleteYeah bankruptcy is sad :(
ReplyDeleteYeah, you typically want to avoid bankruptcy.
ReplyDeletenice to know that
ReplyDeleteIll try to avoid bankruptcy :)
ReplyDeleteThanks for the info!
ReplyDeleteHopefully, with all the reading I've been doing, I DONT GO BANKRUPT. lol
ReplyDeleteWow, nice information. Good way to keep yourself safe, splitting everything up.
ReplyDeletecool post
ReplyDeletethx for additional infos
ReplyDeletebankruptcy was always and will always be there.. sad story
ReplyDeleteyea thats risky..
ReplyDeleteman those notes were a lot more important than you think
ReplyDeleteidd, companies go bankrupt everyday
ReplyDelete