In news:1f9604a9-85c7-4e74-b30e-bf0cbef57455@l17g2000pri.googlegroups.com,
peterwn typed:
> On May 13, 4:20 pm, "TomTom" wrote:
>
>>
>> But it is easy for a person to set up the normal $2 company. If it
>> goes bust, the person is not bankrupted. It means that only the less
>> well-informed person is ever made bankrupt.
>
> Except that lenders will look for personal guarantees, and so may
> trade creditors eg landlords (almost universal practice), phone
> companies, power companies, etc.
>
> A business owner may be able to minimise such exposure with a high
> interest low doc loan and seeking out as far as possible suppliers who
> do not wnt cash on the nail or personal guarantees.
Ok. So the person concerned, taking advice, ensures that they have no assets
that can be attached by creditors. The assets are held by a $2 company in
the usual way. A personal guarantee is then worthless, and there is no
point in bankrupting such a person. Agreed?
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