I am heavily in debt but not in arrears. My business cannot sustain repayments and I am losing lines of supply now. My home(low equity) is in my name only but my partner and 2 kids live there too. Will I lose house?
Can I keep trading as a sole trader if I am declared bankrupt?
Can I include loans my father took out in his name on my behalf if I go bankrupt? I don't know how to keep paying them if my business goes?
You will be able to continue trading if the OR allows which invariable they do. You will have to continue trading in the same name as you are now.
As far as your home is concerned the trustee in Bankruptcy would calculate the equity and then your proportion therein. Although the property is in your sole name, if your partner lives there and contributes towards the mortgage or property costs then he may well have developed a proprietary interest in the property. This would lower the sum required for you interest in the property.
In answer to your question you will not necessarily loose your home, however a sum of money will be need to be supplied to the OR after the calculation of your beneficial interest is completed.
Unfortunately if your Father took out loans to include in the business then he will be liable for these and can not include them within your Bankruptcy.
questions about going bankrupt
Posted - 04 June 2008 : 13:43:56
