Personal responsibility for business debt

You may think that business debts are distinct from those which individuals incur, but the line between personal and business liabilities is not as clear cut as it may seem. 

As a sole trader, an unincorporated partnership or if you have personally guaranteed the debts of a limited company the liabilities of that business ultimately fall on your shoulders.  

If the business has cashflow issues, underperforms or ends up in formal insolvency, creditors may be able to pursue their debts against the individuals who traded that business.