Many entrepreneurs consider that the debts of a company belong exclusively to the company. In most cases, this is the case. However, there are situations in which the administrator can be held personally liable.

Problems arise when it is found that certain decisions have contributed to the worsening of the company’s financial situation or have harmed creditors.

Frequently encountered situations include:

• the continuation of the activity, although the insolvency was obvious;
• making preferential payments;
• lack of proper accounting records;
• use of the company’s funds for personal gain.

The law does not sanction the failure of a business, instead, it can sanction the way it was managed.

That is why, when the first financial difficulties appear, the decisions taken by the administrator become as important as the economic situation of the company.

Not every debt of the company becomes a personal debt, but certain decisions can have consequences that go beyond the company’s assets.

If you are facing financial difficulties or are uncertain about the risks associated with the decisions you are making, a timely legal consultation can clarify your exposure and help you act in a way that protects both the company and yourself personally. The cost of prevention is always lower than the cost of liability.