There is a big difference between debts that only your business owes and debts that you (and perhaps your spouse) are personally responsible to repay. Understanding which debts you are personally liable for will help you determine whether to take them on in the first place and how to deal with them if you can't pay them. While deciding not to pay any business debt comes with consequences, not paying some types of debt has worse consequences than not paying others. Knowing which is which is vital to protecting your personal assets.
Prioritizing Which Business Debts to Pay
Ignoring any business debt comes with consequences, but not paying some types of debt has worse consequences than not paying others.
Negotiating Debt Settlements When You Go Out of Business
When a business closes, it usually has a good-sized pile of debts—to landlords, suppliers, utilities, service providers, and possibly a bank or private lender.
What Can Creditors Do If You Don't Pay?
Debts and creditors fall into different types of legal categories, meaning that some of your creditors have more rights to collect and a bigger ability to negatively affect you and your business than do others.
Are You Personally Liable for Your Business's Debts?
Learn whether a business creditor can come after your house, bank account, or other personal property.
Spouse and Partner Liability for Jointly Owned Business Debt
Business debts that you share with another person—a spouse, partner, or cosigner—can raise some legal issues if you can't pay them.
When You Can't Pay Your Business Debts: Personal Liability and Bankruptcy Options
If your business is in the red, take steps to protect your personal assets.
Piercing the Corporate Veil: When LLCs and Corporations May be at Risk
An LLC or corporation's owners, members, or shareholders may be on the hook personally for business debt.