• Personal bankruptcy for a business owner can be a tricky situation if the business has not be set up properly. If a business is a corporation or limited liability company, a business owner should experience little fluctuations in business credit cards and other lines of credit even when going through a personal bankruptcy. Those who have not adequately set up a business to limit liability may soon find accounts in the red.
  
  

Checking Account Issues

• If you happen to have a business credit card with the same bank that houses your personal checking account, a problem or two can arise when you file for personal bankruptcy. According to Bankrate,com, your bank may be able to offset its potential future losses by seizing the funds in your checking account to pay down your business credit card debt. This is why it's often a good strategy to keep personal assets and funds completely separate from your business assets even to the point of using different banks for different accounts.
  
  

Available Business Credit

• Credit card companies and other lending institutions pay attention to the revolving balances on your credit cards and how much available credit you have at the end of each month. When you file for bankruptcy, if your business credit is tied to your personal credit, it can adversely affect the available balance on those business cards. A bank which holds your business line of credit may feel the potential for you to use your business credit irresponsibly is at an all-time high and may reduce the available credit on your business credit cards to manage that risk.
  
  

Interest Rates/Account Closures

• If your business is a sole proprietorship then legally your business debt, credit and assets are considered one in the same. A personal bankruptcy can have an adverse affect on your business credit interest rates since these rates are tied chiefly to your credit score. Rising interest rates can increase the length of time needed to pay off your business debts as well as the minimum monthly payments necessary to keep the accounts current. If your business is seized through a bankruptcy liquidation, your lending institutions may close your business credit accounts altogether because you no longer have the backing of a legitimate business.