For the most part, the bankruptcy of a corporation will not affect its individual shareholders or their credit ratings. Because a corporation and its shareholders are separate entities, shareholders are not responsible for a corporation’s debts. However, if a shareholder has made a personal guarantee to a creditor, such as a bank or a landlord, they may then be liable for some of the debt owed by the corporation. Your liability may increase if you are a director, as you will then be responsible for unpaid wages, vacation pay, employee source deductions and Goods and Services Tax (GST) or Harmonized Sales Tax (HST). If you are a concerned shareholder who wants to know more about their role in a corporation’s bankruptcy, you can reach out to our team for guidance.