How will your personal bankruptcy affect your corporation?

Your corporation is considered a separate entity. Therefore, if you file personal bankruptcy it will not affect your corporation as a whole.  However, if your personal shares of the corporation are considered your personal assets, those shares could be liquidated as part of your assets, and the proceeds from the sale would be used to…

What happens to you if your business files bankruptcy?

Whether or not your business bankruptcy will affect you personally depends on the type of bankruptcy you file. If you file chapter 7, the shareholders of your corporation (including you) could lose your stock values if the stock shares are liquidated with the corporation assets. If you choose to file chapter 13 bankruptcy, the shares…