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Coronavirus Impact and Assurance: Yes! We are still open for business!

For the last year, thanks to the hard work of all of our staff, and you, our clients, no one who works at this office has gotten Covid while working here, and we have not spread a single case to any of our clients, while getting all of our client's legal needs taken care of. With the spread of vaccination the end is in sight, normal times where we can meet our clients in person in the office are just around the corner.

During the transition we will be having some in person, in office appointments for clients who have already been vaccinated, and for whom the CDC recommended period of time has passed since their last shot. Of course, for anyone who would prefer a phone or video appointment for safety, convenience, or any other reason those types of appointments are always available.

For our clients who have not yet completed the vaccination cycle phone and video appointments are of course available, and, with the return of warm weather we will again be offering outside appointments under the tent right outside our front door. For all appointments, masks will continue to be required.

Through the transition safety of all staff and clients will continue to be our top priority, we look forward to seeing you soon.

Please see our blog for more info on pandemic response.

How a business bankruptcy impacts your personal credit score

| Apr 16, 2018 | Blog

Even huge companies are not immune to financial trouble. Earlier this year, Toys ‘R’ Us filed for bankruptcy and announced it needed to close approximately 180 stores across the nation. 

Entrepreneurs considering bankruptcy need to weigh the pros and cons of the process with the value of their companies. It is possible for a business of any size to file for bankruptcy without going under completely. You can expect your company to certainly take a hit with its credit rating, but you may wonder how a corporate bankruptcy impacts your personal credit score.

The truth of the matter is that it comes down to the type of business you run. 

General partnership

Generally, when a company classified as a general partnership files for bankruptcy, it will not impact the personal score of the people who run the company. However, you will still be responsible for paying off all business-related debts. Your company may require liquidation. In this case, your score itself will not drop, but creditors may see the bankruptcy when running a credit report under your name. 

Sole proprietorships

Sole proprietorships carry the most risk in the event your business files for bankruptcy. From a financial perspective, there is no difference on your personal credit report whether you file for bankruptcy or your company does. You are personally responsible for repaying any outstanding debts, and you can expect your personal score to take a hit. 

Limited partnership

Your credit score has the most protection under a limited partnership. You will not be personally responsible for any business-related debts. The one thing you do need to consider is whether your company made any guarantees with creditors in the past. This is why it is always important to read the fine print. If you agreed to pay back a creditor, then you will personally need to pay the money back, and the company bankruptcy can affect your personal rating.  

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