if the business is a Ltd company then only if there are personal guarantees would you become personally liable.
If you are a sole trader - then effectively it is a personal debt and would cone under a bankruptcy petition. Although the Official Receiver probably would not accept a claom for the 4 years outstanding because the landlord may well re let the property in that time.
If you have a business there are other considerations to consider:-
1. What you are going to do for income afterwards 2. Do you want to continue in business 3. what are your business records like - the OR will want to see these 4. bank accounts 5. vat registration / de registration 6. stock with "Right of Title" 7. threats from Landlord etc etc
It is easy to try to confuse the issue and stop trading, close your premises and go Br on the same day. This is definately the wrong way round.
I would suggest you conclude the activities in the premises by a certain date, sort out your future income position then petition if that is the right solution.
I'm still fairly confused! I haven't had an income from shop in almost 2 years, things are getting worse there and shops are closing down all around me. I am a sole trader. I've asked for rent reduction & have been offered next to nothing, this won't help as my 08/09 accounts were £12,000 loss! my rent is due & can only afford to pay on a credit card. if i decided to just not pay the landlords, can they make me BR? if so would they try and get the remaining 4 yrs money out of me (i have a property in neg equity that i rent out) so maybe they can have that? My accounts show no profit for last few years. I have been vat registered, but have now dropped under threshold as takings drastically droppped. What other business records are there to show the OR? I don't know which way to turn! help?
Will bankruptcy get me out of a business lease
Posted - 20 May 2009 : 05:11:05
