Effect of liquidation on a director’s Credit Rating
Can you still get finance? Is it like Bankruptcy?
Credit Reporting Agencies do keep track of companies that enter Creditors Voluntary Liquidation (for insolvent companies) and the names of the directors of those companies. When someone does a personal name search at a Credit Reporting Agency they will obtain details of any companies that have entered company liquidation while you were a director from the last seven years.
So what can you do? Very little – it will be a mark of sorts on your credit record that will be found if someone looks deep enough. But it is not that often that someone does delve that deep into your credit record.
Liquidation is not bankruptcy!
Also remember that liquidation is not the same as bankruptcy. A company is a separate legal entity to a director and the company’s directors are not automatically liable for a company’s debts.
A personal bankruptcy is a serious black mark on your credit rating – being a director of a company that went into liquidation is a less serious mark.
Lastly, being a director of a company that enters Members Voluntary Liquidation (for solvent companies) will not affect your credit rating at all.
If the above advice has not answered your questions you might want to review the following pages and downloadable Information Sheets: