im about to start coorporation. the guy told me i can use my credit and be a personal guarantor. he says if my company goes south, my personal assets(home) would not be affected if i were to file bk on the coorporation?
would my personal assets/credit be affected if i filed bk on my coorp and i was the personal guarantor? i would hate to lose my home and personals.
Not knowing exactly what country you may be in, or if in America which state, I can give you a general answer to your question, but laws can vary among countries and states.
In most places/countries I know, if you guarantee a loan for a business, you are personally liable or responsible for the loan if the company goes bust. Which does place any of your personal assets, such as a house or property at risk.
So I would question the advice you were given.
If you care to email me as to who and where this advice was given, I will look further into this for you.
If I Personally Guarantee the Loan to Start a Company Am I Responsible for It? - Christina by Jon Emge
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