Does Filing Bankruptcy on Your Business Affect Personal Credit?
Business bankruptcy can affect personal credit if you are doing business as a sole proprietor or have personally guaranteed business debts. However, your credit isn’t affected if your business is a separate legal entity, like an LLC or corporation, and you haven’t provided personal guarantees.
This is exactly like owning a house or renting it out. You are affected by credits if you own a house and pay the mortgage. But if you rent the house, you aren’t affected in any way.
