Have Legal Questions? Ask a Lawyer Now.
Hello and welcome! If you have any other questions, please let me know or please click Accept.
This is an unfortunate situation.
They can ask you if you filed bankruptcy but you can call back and make sure they understand that it was a personal bankruptcy and not a business bankruptcy, but please understand that they probably were asking about personal as well as business bankruptcy because for small businesses, your personal bankruptcy is what usually happens as few small businesses actually file business bankruptcy.
Thus, if you were having financial difficulties, you could just close your business and file personal bankruptcy and that would eliminate your liability on your debts, both business and personal.
So at this point, you will have to disclose that you filed bankruptcy when asked or you risk them canceling you at any time and backdating the cancellation if they find it in an audit and bankruptcy is public record.
My best advice is to try to go back to your old insurance company and see if they will take you back
Please press Accept.
And if they (the old insurance carrier) refuse to take me back?? Is there any carriers out there that could help me"?..my business is working with high end clients and it is important I have liability insurance.
If they refuse to take you back, you just have to try every single carrier out there as each carrier has different requirements, but to make things easier, make sure to tell them that you have had a bankruptcy at the start.
You may have to pay more but at least you'll have insurance.
You're welcome and good luck!