With many directors facing the prospect of having to liquidate their ltd company this is a question that is often on a directors mind. The thought of having to close your company can be stressful enough without the idea that the company closure will hang around your neck personally by affecting your credit score. Liquidating a ltd company in most circumstances will have absolutely no bearing on your personal credit score and won’t appear on your credit report.
When you set up a ltd company you protect yourself personally, should the company fail, you are protected by limited liability. If a ltd company becomes insolvent the unsecured debts are written off and included in the liquidation. Examples of unsecured debt are corporation tax, VAT, PAYE, business rates, Bounce Back Loans, and CBILS.
Once a ltd company is placed into liquidation your duties as a director end and the liquidation does not appear on your personal credit file.
There are a couple of examples where a liquidation could affect your personal credit file, watch on to find out more
