Many business owners are rightfully concerned about the potential impact of insolvency proceedings on their personal credit rating.

In the case of a creditors voluntary liquidation (or any liquidation procedure) this will show up on the records of credit reporting agencies, for seven years after the liquidation, though it may not necessarily affect your credit.

What is Generally Contained in a Credit file?

Credit rating agencies like Experian and Equifax collate information from credit providers, courts, loan companies, public records, and collection providers, to ascertain a level of potential risk.

What will show on a Director’s Personal Credit Rating after a Liquidation?

For directors, whose company has been through a CVL (or any form of liquidation) a personal name search run by a credit rating agency will list your involvement in an insolvency. That’s not to say, however, that it will necessarily affect credit, which will be up to the lender to decide. But the information will certainly be in the public domain.

Liquidation is Different from Bankruptcy

If you’re a company director concerned about how your involvement in a corporate insolvency may affect your credit, it’s worth remembering that liquidation is completely different than bankruptcy. Your company is a distinct legal entity to yourself, which means you are not automatically liable, nor automatically responsible.