Peronal guarantees obviously put you on the hook personally, and the lender would look to you to recover any loss from the BK loan. Otherwise, officers and directors are generally protected from the debts of the company (up to the amount of their equity in the company, whih may well be used to satisfy debts), except for some special things, like trust fund taxes - sales and payroll taxes generally - that carry personal liability.
If your business is tied to your personal credit, then yes, you run the risk of being personally affected by the business's bankruptcy.
depends on the state
No. It is protected by law.
If the pastor files for personal bankruptcy, no - the church fund can't be touched. If he files bankruptcy ON BEHALF of the church, then any and all funds and assets of the church can be affected.
In a Proprietorship, the personal bankruptcy of the proprietor may cause shut down of business. Whereas in Partnership and Joint Stock Companies, bankruptcy of Partners, Directors effects business credit immensely as bankers become shy in extending further credits to the company.
No, discharged debt is considered a forgiveness of debt and not a bankruptcy. Bankruptcy can only happen as a result of bankruptcy court procedure. Certain loans can be discharged due to hardship or disability, especially if there is an insurance policy in force to cover such a situation. When a loan is forgiven due to hardship or disability, the debtor's credit rating is usually not affected.
Federal or private...NO
You can payoff whoever you want and in what order you want to unless you have filed BK (Bankruptcy). At this point the Bankruptcy Court will instruct you and your attorney, who will get what money there is left to pay down debt. Goodluck to you and remember if BK is filed it won't matter about your personal credit score for 7 years, it will all be affected whether you payoff a personally guaranteed loan or not. Sincerely, Val
Yes. First, if it isn't an Incorporated business, they most likely are completely totally involved (as the business is normally simply them personally really). And of course, if it is a Corp, the officers may be personally liable for some things...sales and payroll taxes most notably.
Both have the same negative impact on your credit.
If your partner files for bankruptcy and you don't then the bankruptcy will not appear on your credit report. But you will be partly responsible for before bankruptcy filing. Generally filing bankruptcy will affect the credit rating of the individual who filed it.
The cosigner's credit will only be affected if the person that they cosign for defaults on the loan. The bankruptcy will not affect the cosigners credit.