| Author |
 Topic  |
|
|
Mich80
Starting Member
5 Posts |
 Posted - 05 August 2009 : 11:38:32
|
| Hope someone can help my husband and I have 123k of unsecured debt we have a business which is just covering our business bills and our basic essentials we have no income left for iva and dmp is also not option we were advised on self negotiation but with this amount of debt we would be dead and buried before we saw light at end of tunnel. Basically if we declared ourselves br would we still keep business. |
|
|
Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 05 August 2009 : 12:50:59
|
| Is the business sole trader partnership or a limited company you have not said, if it is a limited company are there any personal gurantees. |
 |
|
|
Mich80
Starting Member
5 Posts |
Posted - 05 August 2009 : 13:44:34
|
Sorry it's a partnership and we have been trading for just over a year
|
|
|
|
debtinfo
forum expert
2826 Posts |
Posted - 05 August 2009 : 19:24:05
|
The partnership would be disolved imeadiataly upon the making of the Bankruptcy Order. The Solvent Partner (your husband) would have to pay half of the Net value of the partnership to the trustee. The Net value is the Assets minus the liabilities.
Have you used any of your personal debts to invest into the partnership |
|
|
|
Mich80
Starting Member
5 Posts |
Posted - 05 August 2009 : 20:46:22
|
We are both looking at br and we did have a personal loan to buy the business so it would be both partners in the business that would be insolvent. We have spoke to business debtline who advised self negotiation but it would take forever to pay this level of debt off.
|
|
|
|
debtinfo
forum expert
2826 Posts |
Posted - 05 August 2009 : 20:55:24
|
| What type of business is it, The partnership will be disolved but there is nothing to stop you from starting a new business the next day |
|
|
|
Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 05 August 2009 : 20:59:34
|
Hi Mich80
it sounds like you need specialist advice from an expert who deals with both bankruptcy AND business situations.
Depending upon the type of business ( retail, pub, professional services etc etc etc ) would depend upon how best to continue.
Upon the making of a bankruptcy order the OR would be the beneficiary of the assets ( personal and business). However if the business has not fared well over the last year ( due to the economic climate) it is quite likely not worth anything,
we would also need to review leases that are involved, pipeline business, HMRC, stock etc etc.
From my experience it is always better to sort ALL of the variable out before petitioning for bankruptcy.
Possibly the most important question is what are you both going to do AFTER bankruptcy. If you wish to continue in business then this is possible but it is advisable to conclude the partnership first and start as sole traders before moving forward.
Always happy to discuss the situation in greater depth ( as are all the experts )
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
|
|
|
Mich80
Starting Member
5 Posts |
Posted - 05 August 2009 : 21:11:35
|
If we disolve partnership now and start as sole traders does that mean we would pay 2 sets of br fees and the business is a cafe after the br we did want to continue the business I don't know if that is possible.
|
|
|
|
Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 05 August 2009 : 21:24:46
|
Hi
if the business is a cafe you seriously need to review this with an expert.
There is probably a lease that needs to be sorted out. If you petition for br and still have the cafe open it is highly likely that the OR will have agents visit the premises that afternoon to close up and sieze the assets.
You also have the fixture & fittings, counters coffee machine etc etc.
if you wanted to have reduced costs at court then you could petition as a partnership, however you would then need approval from the OR to trade as sole traders after the event.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
|
|
|
Mich80
Starting Member
5 Posts |
Posted - 05 August 2009 : 21:56:05
|
Sorry I can't get my head round this if we dissolve the partnership first then set up as sole traders before we start br process we can still trade or do we need to close down and dissolve partnership file for br then wait for br then open as sole trader. I hope that makes sense
|
|
|
|
Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 05 August 2009 : 23:26:33
|
Hi
it is complicated and you do need to get thonmgs done in the right order.
Depending upon the other items I have discussed - lease, stock etc etc - then I would recommend you start trading just before petitioning for Br.
However i still suggest that you speak to an expert.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
|
|
| |
Topic |
|
Hope someone can help
