Does Liquidating a Company Affect Credit Rating?

Once a company goes into liquidation, the company ceases to exist and the directors duties cease. This does not appear on your personal credit rating.

What are the consequences of liquidating a company?

The quick answer

The effects of liquidation on a business means that it will stop trading and the powers of the director's will cease. The directors are replaced by a Liquidator whose job it is to realise the assets of the business for the benefit of all the creditors. All of the employees are automatically dismissed.

Does closing a business affect credit?

Ultimately, the business is not a separate legal entity, and any adverse financial issues will be placed against your personal credit report. This can then have a great impact on any future business ventures or when seeking additional credit.