Limited company bankruptcy

April 11th, 2005 by Questions

If my husband has a limited company and it goes bankrupt, is he personally responsible fo the debt. Can debtors collect from pesonal assets. Would I be responsible if I have nothing to do with the company and am not on any paperwork?

Questions

One Response to “Limited company bankruptcy”



April 13, 2005 at 8:11 pm, A licensed trustee said:

One of the main reasons for incorporating a company is to protect the owners from liability. Creditors of the corporation cannot pursue the owners of the corporation. However, if the owner personally guaranteed the debt, such as with a bank loan, then the owner is personally liable.

Also, the directors of the corporation are personally liable for various government obligations, such as unpaid employee source deductions and GST payments.

A spouse is not responsible for the other spouse’s debts, unless they have co-signed for those debts.

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