Q: I am in Colorado, can I declare bankruptcy for my business credit card without having my personal credit score affected?
I have a business credit card, and paying off this business credit card is going to take me years. I am okay with declaring bankruptcy on this business credit card and taking the hit to my business credit score as long as the following criteria are assured.
1: My personal credit score must not be affected(I want to be able to rent in nice neighborhoods lol)
2: Every month I have to pay $700 to this business credit card. I am mainly trying to get rid of this monthly thorn in my side. If not for this, I would be saving a lot of money every month.
A:
The most important element here is whether you personally guaranteed the business debt. If you did, the business bankruptcy won't wipe out your personal obligation to pay that debt. If the business is solely liable for the debt, which is very rare, there isn't any reason your personal credit would be implicated. It all comes down to how you signed for the debt.
To be clear, if you file a business bankruptcy, you're agreeing to surrender the business and all of its assets to the court for liquidation.
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